NVIDIA Corporation (NASDAQ:NVDA) To Face New Competition From Intel


Dallas, Texas 10/17/2013 (Financialstrend) – NVIDIA Corporation (NASDAQ:NVDA) the specialized semiconductor and chip set maker’s CPUs have found their way into iMac computers, Microsoft surface tablets and a host of other smart phone and gaming devices. It has garnered a $9.13 billion market cap and had recorded close to $4.2 billion in sales over the past 12 months.

Share holders of NVD would be paying close attention to news emerging from Intel lately. Trade bodies tracking the premium chip maker’s major moves have predicted that Intel has lined up new offerings which have the potential to recast the dynamics of the entry level, high volume CPU market. Trade magazine Digitimes has been talking about a imminent launch of entry level tablet CPU by Intel. It is being predicted that the product would be priced competitively in the range of $15 to $20 price range.

The entry of Intel into this high volumes but tepid margins business will create a flutter among the existing market players catering to this segment like NVDA, Qualcomm and MediaTek. If Intel does come good with low priced CPU it would be a clear sign on the chip maker making a determined push to carve out a share of the Tablet CPU market for itself. On various public forums, Intel executives have been candid in conceding that the chip maker missed the bus when it did not foresee the market evolving towards smart phones and mobile computing devices like tablets. Tablets need smaller and less expensive chips which Intel did not cater for. This allowed smaller and fleet footed chip makers to set shop and capture the market.  Latest moves from Intel indicate that it is trying to play catch up.

In the light of this new development share holders of NVIDIA would be watching with interest if Intel wants to take an organic route or the acquisition route to establish itself in the tablet and smart phone CPU market.