Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is NVIDIA Corporation (NVDA) About to Threaten QUALCOMM, Inc. (QCOM)?

Page 1 of 2

NVIDIA Corporation (NASDAQ:NVDA) dreams of a smartphone revolution where its Tegra line of mobile processors plays a central role to the story. The company believes its Tegra line of mobile processors can continue growing “well over” 50% a year for the foreseeable future, fueled not only by increased demand, but by technological advancements. These advancements primarily come down to further chip integration, which on a high level means taking multiple chips and combining them to create a multipurpose chip. In the world of mobile computing, all roads lead to chip integration because it saves space, power, and costs, all of which are attractive from a manufacturer’s perspective.

NVIDIA Corporation (NASDAQ:NVDA)In the context of NVIDIA, it means successfully integrating a 4G-LTE modem directly onto its Tegra processor. To help further the effort, NVIDIA purchased Icera in 2011, a wireless baseband company, adding some much-needed engineering talent to its roster. As exciting as it is for NVIDIA to advance new technological breakthroughs for its organization, these efforts potentially threaten QUALCOMM, Inc. (NASDAQ:QCOM)‘s integrated chip business.

The road to integration
Qualcomm investors shouldn’t run for cover just yet. NVIDIA has yet to offer a Tegra-LTE solution and it isn’t expected to happen until sometime toward the end of this year. As a result, NVIDIA’s current Tegra 3 processor has only made its way into two smartphones from HTC. To date, Qualcomm remains the only major chip maker to offer a mobile processor integrated with a 4G-LTE modem. The reason why Qualcomm is so far ahead of the competition is because it aggressively accelerated the processor’s release schedule, putting the company in the highly advantageous first-mover position. For the time being, Tegra sales will continue to be driven by non-Apple Inc. (NASDAQ:AAPL) tablet sales until it can integrate LTE within its chips. It likely won’t be until next year until investors know if Tegra will be a serious asset for NVIDIA in the smartphone market.

Processor wars
Qualcomm’s next-generation of processors intended for high-end smartphones, tablets, and smart TVs are likely to keep NVIDIA and its upcoming Tegra 4 processor on its toes. The flagship Snapdragon 800 chip is expected to be available by the middle of this year, offering a performance gain that’s promised to be 75% faster than its predecessor, the Snapdragon S4 Pro. A big factor to consider here is how the recent introduction of Microsoft Corporation (NASDAQ:MSFT) Windows RT will influence the tablet market and both of these companies’ businesses. NVIDIA has its deepest ties with the PC industry, which could create a potential hurdle for Qualcomm to overcome as it enters the Windows RT computing market. Not to mention NVIDIA has far more advanced GPU technology, which could be viewed as the better fit for the high-end tablet market. But then again, it might all come down to battery life, and Qualcomm’s customized processor architecture could give it the edge. NVIDIA’s upcoming Tegra 4 utilizes the ARM Holdings plc (ADR) (NASDAQ:ARMH) Cortex-A15 processor core right out of the box, where Qualcomm’s upcoming chips will be based on newly customized “Krait” architectures. These in-house designs have allowed Qualcomm to maintain a competitive edge in an industry where it’s become increasingly difficult to differentiate.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!