Nvidi’a (NASDAQ:NVDA) push into mobile is starting to pay off as results from the first batch of Android devices using Tegra 2 are leading to greater demand for Nvidia’s chips. While some uncertainty in the PC market remains, Nvidia has made progress in mobile chips market as demand is ramps up due to greater smartphone and tablets adoption. This gives other players like Qualcomm (NASDAQ:QCOM) and Texas Instruments (NYSE:TXN) something to think about. Below we take a quick look at Nvidia’s progress.
Success Driven by Tegra 2
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The company earned revenues of $122 million in its mobile and gaming console chips business (consumer products) which is a record.  This was primarily a result of success of Nvidia’s dual-core mobile processor called Tegra 2. Some products using this processor have been launched and the uptick in incremental revenue have reflected this. These products include both smartphones and tablets.
According to management: 
The record performance is due to our first group of Tegra 2-based Android products hitting the market. Among them are the MOTOROLA ATRIX and LG Optimus 2X super phone, as well as tablets like the MOTOROLA XOOM, LG Optimus Pad and G-Slate, the ASUS Eee Transformer, Dell Streak and the Acer Iconia A500.
The story doesn’t just stop here.
Several Tegra 2 based devices are expected to launch in Q2 from companies like Acer, Motorola, Toshiba and Samsung. We now expect the revenues for mobile & gaming console chips to grow significantly in 2011 amounting to well over $400 million and estimate that this division constitutes about 13% to Nvidia’s stock.Notes: