Nvidia is set to replace Texas Instruments as the supplier of the application processor for the next iteration of the Kindle Fire tablet, the most serious rival to the iPad 2.
Canaccord Genuity analyst Bobby Burleson (via Forbes (opens in new tab)), published a note in which he mentions conversations he had with sources in the tablet supply chain.
He also adds that the next Fire tablet will have an 8.9-inch screen rather than the smaller 7-inch one that it inherited from the RIM Blackberry PlayBook template used to build the first Kindle Fire.
Whether this is indeed true remains to be seen and it is not known whether price or performance (or both) was the determining factor in the potential selection of Nvidia.
Most of the first generation Android tablets on the market are powered by the Nvidia Tegra 2 including the Motorola XOOM, the Samsung Galaxy Tab and many smaller players like the Advent Vega and the Hannspree Hannspad.
The tablet is likely to be powered by a customised version of the Nvidia Tegra 2, one which is finetuned for Amazon's own custom-made version of Android, just like the Apple iOS and Apple A4/A5 tandem.