Joining the bubble
After the triumphs of CES, it was another good trade show for NVIDIA at MWC in Barcelona as a bunch of Honeycomb tablets were launched, all sporting its Tegra 2 SoC.
And the graphics giant's earnings are starting to reflect the rapid uptake of Tegra 2 chips, with NVIDIA managing to increase its revenues by five percent over the previous quarter, helped considerably by quarter-on-quarter growth of over 32 percent in the consumer products group, which includes Tegra.
"These strong results underscore the larger story of NVIDIA's transformation," said CEO Jen-Hsun Huang. "Even as we are extending our leadership in visual computing, our investment in mobile computing and parallel computing is now driving our growth.
"Tegra is positioned center stage in the revolution in super phones and tablets, while Tesla is becoming an essential processor for supercomputing. I have never been more excited about NVIDIA's prospects."
It has to be noted, before we declare the last quarter to be an unqualified success, revenue was down almost ten percent on the same quarter a year ago. We presume this is the result of weaker PC and professional GPU sales, which still constitute the vast majority of NVIDIA's revenues.
Regardless, investors have seen enough from these Tegra figures to drive up NVIDIA's share price by almost ten percent. Since the start of the year, NVIDIA's share price has increased by a massive two thirds. It is very much part of the ARM speculative bubble now, with a P/E of over 60.
