NVDA_chart.pngWhat’s growing faster than the number of transistors in modern processors? The answer may well be the number of people who want a modern mobile device.

Nvidia Corp. (NASDAQ:NVDA) announced its quarterly earnings recently. Seems like the company can be pleased with its performance as a whole, despite some bumps along the road. The higher costs Nvidia incurred seem to obscure revenue growth but it’s there and seems like it may have the potential to continue. Here’s a quick breakdown of the numbers reported:

  • net income down 21%
  • Q2 revenue of $1.04 billion, up 2.7% and about $130 million above estimates
  • Q2 EPS surprise percentage of 35%
  • projected revenue for current quarter $6-16 million above analyst estimates

A large part of that potential may come from Nvidia’s move into the mobile market. Sources familiar with these developments report that the company is to partner with Lenovo, the world’s second largest PC manufacturer. The partnership is said to revolve around a mobile device running Windows RT, Microsoft’s mobile iteration of Windows 8.

The news is just an added bonus for Nvidia who are already set to power Asus and Microsoft tablets with their Tegra processor. The Tegra is reported to generate record revenue and Nvidia CEO Jen-Hsun Huang said that the company is well pleased with its progress into the mobile market.

The market reacted well to Nvidia’s earnings and shares went up 5% on Aug 9, then continued a steady climb, with yesterday’s close at $14.81 and 1.29% up. To match its own projections and once again beat analyst estimates, the company will need to continue its expansion in the sphere of mobile technology where competition is fierce. Nvidia have proven that they can achieve both quality and performance so there should be nothing stopping them from pushing forward.