Advanced Micro Devices, Inc. (AMD), NVIDIA Corporation (NVDA): One Key Technology To Know

To get into the smartphone game in earnest, NVIDIA Corporation (NASDAQ:NVDA) acquired Icera in May 2011 . This bought NVIDIA a solid modem and RF team with which to compete against Qualcomm, Intel Corporation (NASDAQ:INTC) (via its Infineon Wireless acquisition), and Broadcom Corporation (NASDAQ:BRCM). As a result of this acquisition, NVIDIA was able to develop its Tegra 4i, which is a quad-core ARM Holdings plc (ADR) (NASDAQ:ARMH) Cortex A9 coupled with an integrated LTE baseband that should see volume deployments beginning in early 2014. This dramatically increases NVIDIA’s total addressable market and should help drive substantial upside to the company’s mobile computing revenue and profits going forward, if it can gain reasonable market share.

Plenty of growth ahead
NVIDIA Corporation (NASDAQ:NVDA)’s core GPU business continues to show strength, which has been a venerable cash cow for the company. As far as growth is concerned, however, I’m more focused on Tegra. While the Tegra 4 didn’t quite live up to expectations (primarily because it was delivered late in order to pull in Tegra 4i and “Logan”), it has still managed to win a number of interesting designs such as the Xiaomi Mi3 “phablet,” the ASUS Transformer Pad, the Microsoft Surface 2, and a few tablets from Toshiba and Hewlett-Packard Company (NYSE:HPQ). I expect the next generation of tablets to be even better with “Logan,” and the smartphone opportunity to open up the revenue floodgates. I’m excited for the growth ahead and believe there’s plenty of room for the company’s stock to run over the next several years.

The article NVIDIA Is On the Cusp of Mobile Greatness originally appeared on Fool.com.

Ashraf Eassa owns shares of Intel and NVIDIA. The Motley Fool recommends Google, Intel, and NVIDIA. The Motley Fool owns shares of Google, Intel, and Qualcomm. 

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