Nvidia has recommended that consumers opt for a tablet device rather than a budget computer, desktop or laptop.
During a conference call with analysts, Jen-Hsun Huang, the Nvidia CEO, also said that shoppers were already becoming aware of this.
Consumers realised, he said, that "a great tablet is better than a cheap PC".
The comment was made as Nvida revealed that almost a third of its revenues now come from the mobile device market, up by 27 per cent over the last three years. Only 70 per cent is now made on PC chipsets.
Huang also revealed that the orders for Tegra chips for smartphones and tablets, such as the Nexus 7 and Microsoft Surface, are helping offset a slump in the PC market. Nvidia posted a rise in revenues for the last quarter ending 28 October, up 13 per cent to $1.8 billion.
Its PC strategy will remain the same, however, even though the higher-end market is in decline. "We don't really play in the cheap PC market," said Huang.