Nvidia (NVDA) competes with AMD (AMD) and
Intel (INTC) in the graphics business. The
company also competes in mobile processors
with Intel ’s Atom and is now planning to enter PC
CPU business as well. The announcement of
Project Denver was one of the more significant
announcements from Nvidia, however another
key announcement was the introduction of the
next generation mobile computing chip Tegra 2.
Our current forecasts does not include this new
development, and we await the company ’s
earnings release to update our forecasts.
We have written an article previously (Android
Market May Decide Fate of Nvidia’s Tegra 2 Chip)
where we discuss how the tie up with android
may help Nvidia ’s Tegra 2 chips to reap success.
While android has been gaining in popularity, the
superior processing power of Tegra 2 dual-core
may set standards of performance in the mobile
market and challenge leaders like Apple
(NASDAQ: AAPL). Apple has set the smartphone
trend with its introduction of iPhone and now the
tablet trend with its iPad. These devices are
powered by A4 processor but Nvidia ’s chip may
create further demand for android devices,
thereby challenging Apple.
Full nVIDIA Model
To use this tool, please
upgrade Adobe Flash Player
here.
(Chart created by using Trefis' app)
Full nVIDIA Model
To use this tool, please
upgrade Adobe Flash Player
here.
(Chart created by using Trefis' app)
The Adoption of Tegra 2
It looks like Nvidia’s new chip is likely to gain
higher adoption on the grounds of its
performance as well as link to the android
operating system. The company announced the
arrival of super phones that will be powered by
its chip.
For example, LG Optimus will be one of the first
super phones that will offer capability of
recording and playing 1080p HD video. With
dual-core processor, the performance will be
much faster and these super phones are likely to
evolve to the direction of mini computers, with
voice calling being used as secondary feature.
One analyst estimated that the new chip will add
over $400 million in high margin sales to Nvidia
in 2011. [1]
Tablets will from LG and Dell will also use Nvidia’s
new chip, which will boost its mobile chip
revenues. It seems that given the recent stock
run, Investors may be expecting quite high
revenue and margin gains.
Source: Http://seekingalpha.com/article/248256-nvidia-s-tegra-2-chip-joins-android-in-riding-the-mobile-market-train
Intel (INTC) in the graphics business. The
company also competes in mobile processors
with Intel ’s Atom and is now planning to enter PC
CPU business as well. The announcement of
Project Denver was one of the more significant
announcements from Nvidia, however another
key announcement was the introduction of the
next generation mobile computing chip Tegra 2.
Our current forecasts does not include this new
development, and we await the company ’s
earnings release to update our forecasts.
We have written an article previously (Android
Market May Decide Fate of Nvidia’s Tegra 2 Chip)
where we discuss how the tie up with android
may help Nvidia ’s Tegra 2 chips to reap success.
While android has been gaining in popularity, the
superior processing power of Tegra 2 dual-core
may set standards of performance in the mobile
market and challenge leaders like Apple
(NASDAQ: AAPL). Apple has set the smartphone
trend with its introduction of iPhone and now the
tablet trend with its iPad. These devices are
powered by A4 processor but Nvidia ’s chip may
create further demand for android devices,
thereby challenging Apple.
Full nVIDIA Model
To use this tool, please
upgrade Adobe Flash Player
here.
(Chart created by using Trefis' app)
Full nVIDIA Model
To use this tool, please
upgrade Adobe Flash Player
here.
(Chart created by using Trefis' app)
The Adoption of Tegra 2
It looks like Nvidia’s new chip is likely to gain
higher adoption on the grounds of its
performance as well as link to the android
operating system. The company announced the
arrival of super phones that will be powered by
its chip.
For example, LG Optimus will be one of the first
super phones that will offer capability of
recording and playing 1080p HD video. With
dual-core processor, the performance will be
much faster and these super phones are likely to
evolve to the direction of mini computers, with
voice calling being used as secondary feature.
One analyst estimated that the new chip will add
over $400 million in high margin sales to Nvidia
in 2011. [1]
Tablets will from LG and Dell will also use Nvidia’s
new chip, which will boost its mobile chip
revenues. It seems that given the recent stock
run, Investors may be expecting quite high
revenue and margin gains.
Source: Http://seekingalpha.com/article/248256-nvidia-s-tegra-2-chip-joins-android-in-riding-the-mobile-market-train
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