Tegra chips help Nvidia to double digit growth -

Nvidia has reported double digit growth in its second quarter financial results as Tegra-powered tablets gain in popularity.

Revenues for the second fiscal quarter amounted to $1.04 billion, boosted by record sales of its Tegra chips.  This meant an increase of 12.9 percent from revenues of $924 million during the previous quarter.

The results were higher than Wall Street expectations and shares in the firm rose 5.2 percent last night.

CEO Jen-Hsun Huang said that the firm has benefitted from the popularity of its mobile processors which are finding their way into cheaper tablets entering the market.  

Huang said that the firm's investment in mobile computing is now beginning to pay off as tablets "come into their own". Nvidia has benefited from use in devices such as the Google Nexus 7, as device manufacturers begin to chip away at Apple's tablet market dominance with its iPad.  

Nvidia's Tegra 3 chips have also been selected by Microsoft to power its own assault on the increasingly competitive tablet market, with the upcoming release of the Surface tablet.  

The results contrast with the fortunes of Nvidia's chip competitors Intel and AMD, which have seen slower growth, as the desktop PC landscape becomes increasingly difficult.

The ARM-based designs of Nvidia are becoming increasingly popular, however, with Nvidia's chips getting a run out on upcoming Lenovo's devices using Microsoft's Windows RT.

Nvidia also claimed that its Kepler GPU chips had been making some gains in the tough PC market.

Third quarter revenues are now expected to grow to between $1.15 billion and $1.25 billion.