Boston, MA 11/27/2013 (wallstreetpr) – NVIDIA Corporation (NASDAQ:NVDA) a leading producer of virtual computing technologies and its association with International Business Machines Corp. (NYSE:IBM) is expected to take its growth to new levels. The two tech companies are coming together to produce a graphics processing unit (GPU) which is accelerated by IBM’s Power 8 technology. This is expected to be an industry leader GPU and one that would expand revenue opportunities for the company, translating into value for the investors.
Incremental revenue is one that NVIDIA Corporation (NASDAQ:NVDA) has been seeking to tap into so as to improve its earnings. And teaming up with IBM now brings that opportunity closer to reality. This deal is important in several ways because to has the potential of earning the company additional revenue and expansion of customer base.
The next generation GPU offers more power and efficiency which makes it just everything that cloud data centers require in their servers. The technology also enhances high user experience through high-performance computing capabilities.
NVIDIA Corporation (NASDAQ:NVDA) is also looking fore generating additional interest in its graphics solutions with the unveiling its fastest GPU accelerator which is targeted at engineering and scientific enterpriser application. This fast speed GPU accelerator is called NVIDIA Tesla K40 GPU accelerator which is being unveiled as part of the association with IBM.
The amazing thing about NVDA is that while its GPU releases so far are changing the digital platform, its pipeline is even attractive. It is working on mobile processor which is expected to offer the much needed graphics processing solution for this fast-growth digital segment.
There is every reason for investors to be excited about the future of this ticker especially looking at its cutting-edge inventions. Nonetheless, higher operating expenses and stiff competition in the industry are some of the factors which pose the real challenge to its profitability.
It is facing established rivals such as Qualcomm Inc. (NASDAQ:QCOM), Intel Corporation (NASDAQ:INTC) and Advanced Micro Devices, Inc. (NYSE:AMD). In this environment the success or failure of NVIDIA Corporation (NASDAQ:NVDA) depends on how the management executes on their growth strategy, but all else, the company has the technological advantage to compete fairly.