Buoyed by a jump in revenue, NVIDIA
Let's take a look at what lies in store for NVIDIA.
A look at the quarter
Revenue for the quarter jumped 25% to $1.02 billion from $811.20 million in the corresponding quarter a year ago, driven by strong sales of its notebook graphic chipsets. This places the company above its nearest rival, Advanced Micro Devices
Although the market for desktop chipsets experienced cyclical weaknesses, the notebook segment helped the company keep its head above water. NVIDIA is optimistic about consumers shifting toward portable computing, and it is focusing its energies toward this segment.
Smartphones are turning into "superphones" thanks to faster processors and graphics. NVIDIA seems to have just the right product for this platform. The company has seen some major design wins with Samsung, LG, and Motorola
Android-enabled phones currently make up 40% of the smartphone market share in the U.S., with shipments still on the rise. With unit sales of smartphones rising, it can be expected that the company will sell more of its chipsets to the manufacturers and generate more revenues in the future.
The Foolish bottom line
NVIDIA has raised its outlook for the rest of the year and sees revenue above Street estimates in the third quarter. Given its recent run of positive results and growth in business, it makes for an interesting investment proposition. I see no reason to shy away from the company.
To stay on the trail of NVIDIA's developments, add it to My Watchlist.
Fool contributor Harsh Chauhan doesn't own any shares in the companies mentioned in this article. The Motley Fool owns shares of Google. Motley Fool newsletter services have recommended buying shares of NVIDIA and Google, as well as writing puts in NVIDIA. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.