Please ensure Javascript is enabled for purposes of website accessibility

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

By Rex Moore and Evan Niu, CFA – Feb 8, 2014 at 6:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The new Tegra K1 chip from NVIDIA delivers console-level graphics on a mobile chip.

NVIDIA (NVDA 0.61%) 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 (QCOM -1.23%) 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.

What investors need to know
Want to get in on the smartphone phenomenon? Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits NO MATTER WHO ultimately wins the smartphone war. To find out what it is, click here to access the "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."

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.

Evan Niu, CFA owns shares of Apple and Qualcomm. Rex Moore has no position in any stocks mentioned. The Motley Fool recommends Apple and Nvidia. The Motley Fool owns shares of Apple and Qualcomm. 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.

Stocks Mentioned

Apple Stock Quote
$140.36 (-1.78%) $-2.55
Qualcomm Stock Quote
$118.31 (-1.23%) $-1.47
Nvidia Stock Quote
$160.85 (0.61%) $0.98

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.