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

Caution flag
The most immediate area where Qualcomm is likely at risk is within the Windows RT tablet space, where Qualcomm lacks the PC-vendor relationships NVIDIA has. Overall, NVIDIA is still in the process of ramping up its smartphone game with the release of a Tegra-LTE integrated solution, inviting the possibility that challenges and delays could arise. However, if NVIDIA can successfully enter the smartphone market, investors need to recognize that it doesn’t guarantee that its shares will rise. NVIDA is a company with many different moving parts, some of which are deeply entrenched in the slumping consumer PC market.

Above all else, the main differentiator between Qualcomm and NVIDIA is that Qualcomm customizes its processor cores to better serve today’s users worldwide. This is all but certain to change in the future, but for the time being, Qualcomm still remains the company to beat, and Qualcomm investors should continue keeping an eye on NVIDIA.

The article Is NVIDIA About to Threaten Qualcomm? originally appeared on Fool.com and is written by Steve Heller.

Fool contributor Steve Heller owns shares of Apple. The Motley Fool recommends Apple and NVIDIA. The Motley Fool owns shares of Apple, Microsoft, and Qualcomm.

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