Nvidia CEO Jen-Hsun Huang says Nvidia GPUs and Intel CPUs go along like hotdogs and mustard, and that he expects Nvidia's Tegra to account for half of the company's business in a few years.

Huang believes CPU-GPU co-processing is the way of the future, and that Apple is showing the way forward, by using Nvidia's Geforce 9400 on its Macbooks. In spite of that, Huang says Intel is still using subsidies and market developments funds to keep Nvidia's Ion out of Atom-based netbooks, which stand to benefit quite a bit more from such a chip than more powerful notebooks.

More interestingly, Huang says that Tegra might represent half of Nvidia's business in just a few years. Tegra is an ARM-based processor with integrated Geforce graphics, and it is targeted at smartphones, smartbooks, netbooks and PMP's.

This is quite a bold statement, as Tegra currently doesn't have that many design wins, and it's not a major factor in Nvidia's revenue stream. Huang obviously has an ace up his sleeve, courtesy of Redmond, and possibly even Cupertino.

More here.