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Why Nvidia is partnering with Acer to boost Chromebook sales

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Acer now leads the Chromebook market

According to the NPD group, in 2Q14, Acer surpassed Samsung in the Chromebook market. According to a Taiwanese Market Research firm, WitsView, global Chromebook shipments totaled 1.8 million units in 2Q14, with Acer commanding 30% of these shipments. Samsung and HP (HPQ) had 24% and 21% market share, respectively. According to the NPD Group, Acer topped the US Chromebook market with a 46.7% market share in 1Q14.

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Nvidia joins hands with Acer

Due to Acer’s expanding grip in the Chromebook market, Nvidia (NVDA) entered into a partnership with the company in order to increase sales of its Tegra K1 processors. Nvidia stated, “Acer has proven they build great Chromebooks that deliver an unbeatable combination of performance, design, and affordability.”

The partnership with Acer marks Nvidia’s entry into the fast-growing Chromebook market. Many chipmakers, including Intel (INTC) and AMD (AMD), are looking for new sources of revenue growth, as their main source, the PC market, is going through a sluggish phase.

You can consider investing in the VanEck Vectors Semiconductor ETF (SMH) to gain exposure to Nvidia. The company makes up about 1.94% of this ETF.

Increased acceptance of Tegra processors

As we have seen in the earlier part of the series, Chromebooks have seen steep increases in sales since their launch in 2011. In 2014, Chromebooks grew to an estimated 5.1 million sales, according to Gartner. Plus, sales are only expected to rise in the future. If Samsung and other Chrome OS gadget creators utilize the Tegra K1 processors, Nvidia will benefit from this trend.

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