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Nvidia talks up the tablet

Nvidian chief Jen-Hsun Huang has been talking up the tablet as his graphics chip firm attempts to persuade investors that there's a future beyond the limited life left in the discrete graphics market.

Huang was holding forth on the back of Nvidia's latest financial report which managed to beat analysts' meagre forecasts my a cent.

The company reported a profit of $84.9 million on sales of $843.9 million for its third quarter of fiscal 2011, which ended with October. The outfit made net loss of $141.0 million in Q2, mainly because of its struggle to get Fermi to work. Nvidia handed rival AMD a few months grace to establish itself in the DirectX 11 market, while it fumbled around trying to come up with a competitive product.

"We have turned the corner," the ever-combative Huang said in a statement. The firm is now flogging Fermi in the shops, Huang pointed out in a conference call, but the future remains mobile, Huang admitted as the talk turned to Tegra.

"Our tablet business and our phone business is going to ramp, and it’s going to ramp hard," Huang said. "There are customers lined up all over the world with a lot of different phones and systems and the amount of activity in our Tegra business system is just simply too great right now."

He claimed the tablet isn't just a fad. "Everybody's building tablets because it's just so important," he said.

"Every single company I know is working on a tablet. There's car companies working on tablets, consumer electronics companies working on tablets, computer companies working on tablets, and communications companies working on tablets. I don’t remember the last time in the history of computing where a singular device is being worked on by all of the industries. The medical industry is working on tablets.

"This is a revolutionary form factor and I think it’s a fore-drawn conclusion this is going to be probably be the largest computing segment. Now, how much of the share depends on ultimately how delightful all of these tablets are being built are and I am just so glad that we decided not to go to market with tablets earlier but to wait and work and put all of our energy behind the next generation operating system and the team over group are working on it.

"So I think when you see it near future it will more than delight you. I think you’ll be shocked how wonderful it is."