NVIDIA Corporation’s (NVDA) success with its Tegra processor continues. NVIDIA’s CEO Jen-Hsun Huang recently announced the launch of 256-core Tegra X1 mobile processor at the International Consumer Electronics Show (CES) 2015. The "mobile super chip" is built on the Maxwell GPU architecture, which provides an enhanced gaming experience for users.
This new chip features next-gen PC gaming technologies, which enable PC and console game developers to build apps that can run not only on smartphones and tablets, but also on televisions, consoles and cars. Moreover, Tegra X1, powered by Keplar technology, provides double the performance of its predecessor, the Tegra K1 and delivers vivid graphics and faster experience for GPUs. Therefore, the adoption of Tegra X1 will boost NVIDIA’s business going forward.
With the launch of this CUDA-core Tegra X1, NVDA can maximize user experience by offering high performance computing (HPC) capabilities. Also, this will enable NVIDIA to increase its customer base and help in garnering additional revenues.
Furthermore, NVIDIA’s new Drive CX "mobile cockpit computer" will be driven by its newly launched Tegra mobile processor. The NVIDIA Tegra processor, being more energy efficient, provides a longer battery life. With access to the most advanced automotive-grade products, the mobile processor will help car manufacturers to bridge the gap between consumer electronics and in-vehicle systems.
In today’s world people are focusing more on autonomous cars, robots and drones. With lesser logistics requirements and much greater flexibility, these reduce operating costs and ensuresafer driving and greater convenience. We believe that with these product introductions and strong focus on quality content, NVIDIA is well positioned to enjoy competitive advantage against Qualcomm's (QCOM) forthcoming Snapdragon 810 chip.
NVIDIA’s Tegra chips are increasingly being used in Google Inc's (GOOGL) Nexus 7 and Microsoft Corp’s (MSFT) Surface tablets. Moreover, the introduction of the latest chip for the mobile market will curb its dependence on the PC market.
Notably, NVIDIA reported a phenomenal 51% surge in revenues from Tegra processors in the last reported quarter (third-quarter of fiscal 2015) aided by a boost in the sale of auto infotainment systems, mobile devices and SHIELD tablets.
Apart from this, NVIDIA’s focus on GRID platforms can increase GPU adoption in data centers, giving it an advantage against its competitors. NVIDIA GRID is a powerful GPU-based platform that supports corporate virtualized desktops in data centers, cloud gaming services and design software-as-a-service.
NVIDIA Corporation offers digital media processors and related software for a wide range of visual computing platforms. It is a worldwide leader in visual computing technologies and the inventor of the graphic processing unit or GPU.
Though NVIDIA faces competition from companies like Advanced Micro Devices, Inc. and Intel Corporation, its innovative product pipeline and the upcoming mobile processor Logan Tegra 4 processors will boost top-line growth, going forward.
Currently, NVIDIA has a Zacks Rank #2 (Buy).
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