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Nvidia targets infotainment space with Tegra K1

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Mar. 2 2015, Updated 9:05 a.m. ET

Tegra K1 processors launched

Nvidia’s (NVDA) Tegra K1 built on Kepler architecture is the next generation mobile SoC (system-on-chip). With Tegra K1, Nvidia aimed to power the next wave of gaming devices, regardless of whether the device is running Microsoft (MSFT) Windows 8.1 or Google (GOOGL) Android. Acer and HP (HPQ) Chromebooks also feature Tegra K1 processors.

The above chart shows the market share of leading players in the tablet chipset market. Apple (AAPL) rules the market, both in terms of market share as well as shipments. 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.

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Nvidia is expanding its presence in the infotainment market with Tegra K1

Nvidia claims that Tegra K1’s GPU is more powerful than GPUs in the Microsoft Xbox 360 and the Sony PlayStation 4 video game consoles. Nvidia also claims that Tegra K1′s GPU is 1.5 times more power-efficient than its peer mobile application processors, Qualcomm’s Snapdragon 800 and Apple’s A7.

Owing to its support for up to 4K (3840*2160 resolution) video output, Tegra K1 SoCs work well with TVs and other types of consumer electronics, consequently enhancing prospects of Nvidia in the in-vehicle infotainment market.

Nvidia too has expressed its intention to concentrate on the in-auto infotainment market. In 2011, deals in the worldwide in-auto infotainment market reached ~$32 billion. Analysts expect that by 2016, the market will surpass $41 billion. Thus, Nvidia is poised to benefit from the increased demand and usage of the Tegra K1.

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