The transition to Blu-Ray and HD-DVD from today's DVD format will be an industry-transforming event, and investors are focused on which stocks will win from it. From this quote, it looks as though NVIDIA (NASDAQ:NVDA) is well positioned (emphasis added):
In the coming months, we will witness of the next-generation high-generation video formats. The introduction of Blu-ray disc and HD-DVD will bring high-definition movies to our homes. The BD/HD associations have announced that nearly 100 movie titles will be available in these new HD formats by the end of the year. As a standard for PlayStation 3, millions of Blu-ray players will be available this year, with 6 times the resolution of today’s DVD.
Blu-ray disc and HD-DVD is a major advance in resolution and quality from the 7-year old DVD format. The image processing requirement is nearly 30 times that of DVD and will require a special video processor to achieve full performance. Our investment in our PureVideo, dedicated video processors and algorithms will help us bring the HD experience to PC and media center users.
We believe we have won every major OEM HD-DVD and Blu-ray design win to-date. Blu-ray and HD-DVD equipped desktops and notebook PCs that incorporate our GeForce 7 GPU and PureVideo video playback technology are going to deliver incredible high-definition movies.
(Excerpt from the NVIDIA conference call transcript.)