As NVidia continues to dump more research and money into products like Tesla, analysts are doing more digging into just how much money is to be made in GPGPU computing. So far, the numbers look good.
Analyst Patrick Newton with Stifel Nicolaus & Co. estimates that Tesla could account for $100 million in Nvidia s revenue in the current fiscal year. The company had total revenue of $3.4 billion for the fiscal year ended in January. “Tesla has the potential to be a very important long-term driver for Nvidia ” Newton said. “They have a very well-thought-out and targeted strategy.” Nvidia it should be noted lost $30 million last year in the face of growing competition and some consumer product miscues. That compared with a profit of $797 million in the previous year. The company projects that its potential market for Tesla could approach 40 to 50 percent of the high-performance computing market which amounts to $4 billion to $6 billion in annual revenue.
via Nvidia’s graphic chips moving into high-end computing arena.
