By Tiernan Ray

Following Amazon.com's (AMZN) announcement today of newborn Kindle e-readers, and a new, 7-inch tablet, the "Kindle Fire," a pair of analysts prognosticate a 10-inch edition will become incoming year, and that it strength climb chips from Nvidia (NVDA), which has parts in another tablets, much as Motorola Mobility's (MMI) "Xoom" tablet.

It would materialize the 7-inch edition of Fire is supported on a defect from Texas Instruments (TXN), not on Nvidia's "Tegra" ambulatory processor.

Analysts today declare that could modify with a newborn model.

Romit Shah, with Nomura Equity Research, who maintains a Neutral judgement on Nvidia shares, writes:

As expected, Kindle Fire is supported on a dual-core TI OMAP processor. Assuming intensity of 5-10mn units and an ASP of $10-15 for OMAP, we judge incremental income possibleness of roughly $100mn or inferior than 1% of TI's sales. That said, the baritone toll saucer and plan could support found Kindle Fire as a plausible figure at the baritone modify of the Android paper market. Furthermore, presented brawny strength of the Apple iPad, this launching could be detected as potentially compressing another Android tablets much as the Samsung Galaxy, Motorola Xoom, and RIM Playbook. We conceive this scenario would be perverse for Nvidia, which has a 70% deal of the Android tablets, and is forecasting paper income to nearly threefold to $400-500mn in FY13 (Jan). That said, a larger modify bourgeois by Amazon could be introduced incoming assemblage and haw allow an Nvidia Tegra processor.

Brian solon with Wedge Partners writes,

We conceive there will be a momentous conference for the creation as Amazon crapper essentially upsell its existing client humble into a extravagantly featured colouration support in a 7 progress modify bourgeois that is familiar, albeit with a colouration concealment and apps/media. We do believe; however, that Amazon will study up the Kindle Fire primeval incoming assemblage with a 10 progress offering, which we wait to be supercharged by Nvidia. It's blurred whether or not the 7 progress Kindle Fire will apply Nvidia, but we ease conceive it's doable as it makes significance to us to apply azygos defect structure crossways the platform. If it's not Nvidia, Texas Instruments is intellection to be the defect of choice.

Nvidia shares today winking downbound 41 cents, or 3%, at $13.43.

Previously: AMZN: 'Fire' To Crimp Margins, Says Citi; solon Competitive, Says Piper, Sept 28th, 2011. Amazon's Fire A Threat To Netflix; Would They Buy Streaming Opps? Sept 28th, 2011.