Nivida May Power Next-Gen Kindle Fire: Report

According to Forbes, Canaccord Genuity chip analyst Bobby Burleson revealed in research that Amazon has selected Nvidia to power the second version of its Kindle Fire tablet. Burleson attributed the information to "conversations with sources in the tablet supply chain."

Burleson also expects the next Fire to have an 8.9-inch screen, rather than a 7-inch.

The first-generation Kindle Fire is fueled by Texas Instruments' one GHz dual-core OMAP4430 processor and WiLink 6.0 connectivity combo solution. The chipmaker, which also fuels the new BlackBerry Playbook with its OMAP4430, had said it was "thrilled" to be part of Amazon’s first Kindle Fire earlier this month.

"We can confirm that TI’s OMAP4430 processor and WiLink 6.0 connectivity combo solution are inside of the Kindle Fire," a Texas Instruments spokeswoman said in a statement to the Wall Street Journal’s AllThingsDigital. "TI is thrilled to be a part of the Amazon Kindle Fire, which boasts powerful performance and engaging consumer experiences that are sure to make it a coveted device this holiday season."

If the report proves true, losing its spot inside the Fire could pose a threat to Texas Instruments’ ongoing presence in mobile devices, Burelson suspects.

"Widely viewed as the only other successful tablet besides iPad/2, a win or loss in the next gen Fire could be seen as a proxy for TXN’s [Texas Instruments’] overall apps processor potential in higher-end tablets," he said.

Both Texas Instruments and Nvidia declined to comment on the speculations.

Texas Instruments saw a year-over-year decline in Q3 profits, reporting a quarterly revenue of $3.47 billion, down 7.3 percent from its Q3 2010 revenue of $3.7 billion. In light of its lower-than-hoped for Q3 profits, the chipmaker also lowered its revenue forecast for Q4.

"We expect the same in the fourth quarter as economic uncertainty continues to weigh on demand in almost every major market segment in which we operate," Texas Instruments said in a statement.

Nvidia, on the other hand, reported healthy Q3 growth with a revenue 1.07 billion, up a whopping 26.3 percent from $843.9 million in Q3 2010.