Analysts have been warning about the viability of Nvidia-based tablets against Apple iPad, and there are fears about overall weakness in the PC market. This week Nvidia shares fell 3.8 percent. But some analysts do not agree with those who want to write Nvidia off.
Analyst Hans Mosesmann with Raymond James said this week's fall was driven by speculation that Motorola's Droid Bionic smartphone, which uses an Nvidia chip, might be delayed. But they said that concerns about Nvidia's smartphone-chip business are overblown. The think that the outfit is doing jolly well in contracts for smartphones using its Tegra chip and doubts the Motorola's Bionic will be delayed.
Mosesmann said he could not see why people were ranking Apple gear over Nvidia chips which were technologically better and used more advanced manufacturing technologies than Jobs' Mob.
While Apple's success with the iPhone and iPad isn't solely determined by its processor technology, the long-term viability of those chips is likely threatened without a "significant redesign" or the use of an outside vendor such as Nvidia, he said. He said Apple's technology is "way behind."