NVIDIA’s New Mobile Processor Unveiled -- Should Qualcomm Worry?

NVIDIA (NASDAQ: NVDA  ) is making noise -- moving toward a custom core approach with its mobile processors. The next iteration of the new NVIDIA Tegra K1 chip is expected to offer more targeted performance and consumption, and a challenge to Qualcomm (NASDAQ: QCOM  ) in the smartphone arena.

The Motley Fool's Evan Niu got a chance to check out the new chip at NVIDIA's booth at the 2014 Consumer Electronics Show in Las Vegas. In this video Evan chats with Rex Moore from the exhibit floor about the opportunities in this space, and what it means to Qualcomm.

A full transcript follows the video.

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Rex Moore: Next thing let's talk about is chips. You saw the nice, impressive NVIDIA booth. What did you think of their new chip?

Evan Niu: Yes, I just came from NVIDIA's booth, and talking to them about their new Tegra K1, a brand new chip they announced earlier this week. Really impressive graphics; they're talking console-level graphics on a mobile chip, which is pretty impressive. We were seeing some pretty nice things running on a tablet -- stuff that's better than the PlayStation 3, which they also power -- some really high-level stuff there.

But also, on the next iteration of that K1 chip, they're going to finally be going to more of a custom core approach. I think that they led this race to, "How many cores can you get into a processor?" but that's not necessarily the best solution, in a lot of cases.

They're going to be taking the design to another level in terms of more sophisticated -- going to more custom designs -- which should really allow you to pinpoint performance and consumption a little bit better.

Really, that will put some heat on Qualcomm, because they haven't had as much traction in smartphones. Qualcomm has really led the way because they have a custom approach. Apple also has a custom approach, but NVIDIA is now stepping into the game.


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  • Report this Comment On February 09, 2014, at 1:22 PM, excelscior wrote:

    Better than PlayStation 3 graphics??? I guess they mean the K1 is approaching PlayStation 4 level graphics?

  • Report this Comment On February 09, 2014, at 2:19 PM, KenLuskin wrote:

    Clearly the Professional division of Nvidia is where the profits are being made, and where this article suggests future growth will happen.....

    SO WHY DID THIS HAPPEN?

    Jean-Christophe Baratault Leaves Nvidia, Joins AMD

    Posted 21 October 2013 - 06:51 PM

    Jean-Christophe Baratault Nvidia's head of professional graphics, the man behind the success of the Quadro & Tesla line of graphics accelerators joined AMD.

    This is in effort from AMD to continue its plans of restructuring the company, the aggressive push towards securing more market share in the professional graphics segment is a huge part of it according to CEO Rory Read.

  • Report this Comment On February 09, 2014, at 2:20 PM, KenLuskin wrote:

    Playstation 3 chip was designed 9 YEARS AGO!

    Comparing yourself to a 9 year old chip only impresses FOOLISH people!

  • Report this Comment On February 09, 2014, at 6:26 PM, jwtrotter wrote:

    I'm always encouraged when the AMD lapdogs come out and respond to anything remotely positive about Nvidia. Just confirms to me the desperation of anyone holding on to their stock in AMD. Go ahead and post all day on these articles . . no one is listening, literally NO ONE.

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