NVIDIA 2010 Annual Report Download - page 11

Our Strategy
We design our products to enable our PC OEMs, ODMs, system builders, motherboard and add-in board manufacturers, and cellular
phone and consumer electronics OEMs to build products that deliver state-of-the-art features, performance, compatibility and power
efficiency while maintaining competitive pricing and profitability. We believe that by developing 3D graphics, HD, and video and
media communications solutions that provide superior performance and address the key requirements of each of the product categories
we serve, we will accelerate the adoption of HD digital media platforms and devices throughout these segments. We combine scalable
architectural technology with mass market economies-of-scale to deliver a complete family of products that span from professional
workstations, to consumer PCs to tablets, smartbooks and smartphones.
Our objective is to be the leading supplier of programmable, high-performance GPUs and ultra-low power mobile system-on-a-chip
products. Our current focus is on the desktop PC, professional workstation, notebook PC, high-performance computing, and
application processor product lines, and we plan to expand into other product lines. Our strategy to achieve this objective includes the
following key elements:
Build Award-Winning, Architecturally-Compatible 3D Graphics, HD Video, Media Communications and Ultra-Low Power Product
Families for the PC, Handheld and Digital Entertainment Platforms. Our strategy is to achieve market segment leadership in these
platforms by providing award-winning performance at every price point. By developing 3D graphics, HD video and media
communications solutions that provide superior performance and address the key requirements of these platforms, we believe that we
will accelerate the adoption of 3D graphics and rich digital media.
Target Leading OEMs, ODMs and System Builders . Our strategy is to enable our leading PC, handheld and consumer electronics
OEMs, ODMs and major system builder customers to differentiate their products in a highly competitive marketplace by using our
products. We believe that design wins with these industry leaders provide market validation of our products, increase brand awareness
and enhance our ability to penetrate additional leading customer accounts. In addition, we believe that close relationships with OEMs,
ODMs and major system builders will allow us to better anticipate and address customer needs with future generations of our
products.
Sustain Technology and Product Leadership in 3D Graphics and HD Video, and Media Communications and Ultra-Low
Power. We are focused on using our advanced engineering capabilities to accelerate the quality and performance of 3D graphics,
HD video, media communications and ultra-low power processing in PCs and handheld devices. A fundamental aspect of our strategy
is to actively recruit the best 3D graphics and HD video, networking and communications engineers in the industry, and we believe
that we have assembled an exceptionally experienced and talented engineering team. Our research and development strategy is to
focus on concurrently developing multiple generations of GPUs, including GPUs for high-performance computing, and mobile and
consumer products using independent design teams. As we have in the past, we intend to use this strategy to achieve new levels of
graphics, networking and communications features and performance and ultra-low power designs, enabling our customers to achieve
superior performance in their products.
Increase Market Share. We believe that substantial market share will be important to achieving success. We intend to achieve a
leading share of the market in areas in which we don't have a leading market share, and maintain a leading share of the market in areas
in which we do have the lead, by devoting substantial resources to building families of products for a wide range of applications that
offer significant improvement in performance over existing products.
Use Our Expertise in Digital Multimedia. We believe the synergy created by the combination of 3D graphics, HD video and the
Internet will fundamentally change the way people work, learn, communicate and play. We believe that our expertise in HD graphics
and system architecture positions us to help drive this transformation. We are using our expertise in the processing and transmission of
high-bandwidth digital media to develop products designed to address the requirements of high-bandwidth concurrent multimedia.
Use Our Intellectual Property and Resources to Enter into License and Development Contracts. From time to time, we expect to
enter into license arrangements that will require significant customization of our intellectual property components. For license
arrangements that require significant customization of our intellectual property components, we generally recognize this license
revenue using the percentage-of-completion method of accounting over the period that services are performed. For example, we have
entered into agreements to jointly develop custom GPUs for gaming consoles and have licensed software development tools.
Revolutionize computing with CUDA and Tesla. Tesla is a family of GPU computing products that delivers processing capabilities
for high-performance computing applications, and marks our entry into the high-performance computing industry. NVIDIA CUDA is
a general purpose parallel computing architecture that leverages the parallel compute engine in NVIDIA GPUs to solve many complex
computational problems in a fraction of the time required on a CPU. Our CUDA parallel processing architecture can accelerate
compute-intensive applications by significant multiples over that of a CPU alone. We are working with developers around the world
who have adopted and written application programs for the CUDA architecture using various high-level programming languages,
which can then be run at great execution speeds on a CUDA enabled GPU. With CUDA, we are able to speed up general purpose
compute-intensive applications like we do for 3D graphics processing. Developers are able to speed-up algorithms in areas ranging
from nano molecular dynamics to image processing, medical image reconstruction and derivatives modeling for financial risk
Source: NVIDIA CORP, 10-K, March 18, 2010 Powered by Morningstar® Document Research℠