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Nvidia profits rise as Tegra chips power ahead

Nvidia's profits soared in the third quarter of this year, topping $178 million - with the graphics manufacturer putting this down to sales of its GPUs and the increased integration of Tegra chips.

The company saw a 110 per cent increase in profits compared to the same quarter last year - also reflected in revenues, which saw a jump of some 26 per cent, with Nvidia pulling in a total of $1.07 billion.

Much of the credit for the firm's success must be put at the door of its Tegra 2 chips, which have seen increasing usage in high-end smartphones, after LG became the first to utilise one in its Optimus 2X handset.

However, it's the third iteration of the Tegra family that has Nvidia really excited, since it's already being included in devices such as Asus' new Transformer Prime tablet and HTC's currently-in-development quad-core smartphone, which will purportedly be known as the Edge.

Nvidia took a bit of a gamble entering the system-on-a-chip (SoC) market, which was dominated by Qualcomm and Texas Instruments when the first Tegra platform was launched. However, Nvidia managed to create a market for itself - and it's certainly paying off financially.

The firm expects fourth-quarter results to be similar to this period, with another jump in profits occurring when Tegra 3 hardware begins showing up in early 2012.

Discussing the growth of Tegra in the smartphone and tablet market, Jen Hsun Huang, CEO at Nvidia, had this to say as part of a news release:

"Our GPU business accelerated in the third quarter, driven by strong demand from gamers and the professional market. And our mobile business benefited from new devices coming onto the market. With Tegra 3 phone wins well ahead of Tegra 2's pace, we're expecting strong growth in the year ahead." monitors all leading technology stories and rounds them up to help you save time hunting them down.