This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Nvidia May Get Bigger Boost From Tablets

NEW YORK ( TheStreet) -- The market for chips powering tablets and next-generation smartphones is heating up. Tablet sales are expected to exceed 100 million within the next two to three years.

Although Qualcomm (QCOM - Get Report) currently has the lead and Intel (INTC - Get Report) has placed intense focus on this market, Nvidia (NVDA - Get Report) is providing competition. But can Nvidia be a major player in powering mobile devices in an increasingly competitive market?

ARM (ARMH)-based chips are transitioning from powering the majority of smartphones into powering tablets as well. (Even Apple's (AAPL) A4 chip powering the iPhone/iPad is ARM-based.) Qualcomm's SnapDragon has long powered many of the of the leading smartphone devices. But Nvidia, with its ARM-based dual core Tegra chip, is increasingly becoming the go-to destination for next-gen tablets, and even some high-end smartphones. ( LG recently announced Tegra will power its soon-to-be-released tablet running a new version of Android.)

Nvidia, long known for its graphics processors, gambled on the emergence of new mobile devices requiring both processor and graphics capability. It licensed the ARM core and built a graphics engine into a chip set it promoted as being the most advanced low-power graphics-enabled processor available.

However, its efforts for the past year have gone largely without major success in the smartphone arena. (It did have a major win in Microsoft's (MSFT) KIN smartphones, but the devices failed to sell and were pulled off the market within weeks of launch.)

But tablets have larger screens and are much more media-centric than phones, and Nvidia's recent move to dual core and its enhanced graphics capability means it is finding new respectability. Its primary competitor, Qualcomm, has been successful with the SnapDragon in smartphones, but has fallen behind Nvidia in graphics and dual core. (Qualcomm will ship one shortly.)

And Qualcomm's reliance on a licensed graphics core from Imagination Technologies (which licenses its graphics cores to most ARM producers, including Apple and Intel) means Qualcomm does not completely control its own destiny. But Qualcomm's relationships with most of the smartphone vendors, and the fact that most smartphone vendors will also ship tablets shortly, may give it an incumbent's advantage.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMD $2.53 0.00%
ARMH $48.66 0.00%
INTC $30.56 0.00%
NVDA $20.42 0.00%
MRVL $13.42 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs