Outlook Not So good For NVIDIA

The past three years have been a breeze for Nvidia, but - according to Nvidia itself - it seems that the tide is turning.

In a move most analysts perceive as reflecting the strength of AMD's new Radeon 4850 and 4870 graphic cards, Nvidia announced that its Q2 revenue will be around $875 million to $950 million. This is significantly lower than previous expectations of $1.1 billion.

Nvidia is currently dominating the high end segment of the graphics cards market with its GeForce 280 GTX; but it is facing a tough competition in the market's midrange where AMD offers equally performing products at lower prices. Nvidia also faces a tough competition in the low-end laptop graphics market as Intel and AMD tend to have larger market shares.

Adding salt to the wound, Nvidia reported higher than average failures in both the laptop GPUs and in laptop chipsets; and so they allocated $200 million to cover a massive recall of those products.

Nvidia said that they used materials "that proved to be weak" in creating those chips and their packaging. Nvidia then blamed laptop manufacturers for their poor thermal designs.

Nvidia's stock price slid over 25% following the aforementioned announcements.

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Comments

Outlook Not So good For NVIDIA

i'm not partial to either nVidia or ATI, but i can say that 2 out of the 3 ATI cards i've ever bought were broke straight out of the box whereas all 6 of the nVidia cards i've ever bought are still working great. maybe that's why nVidia is typically pricier, and hopefully ATI will fix their quality issues not that they're owned by AMD.

Outlook Not So good For NVIDIA

Ive always gone with nvidia i dunno why though as my case can only do crossfire and not sli... i thin nvidia will reduce the price of the 260 coz they know people will have seen the benchmarks for it and if u can get get a 4850 cheaper with same benchs there gonna have to react and reduce the price or they will lose out!!!!!

Outlook Not So good For NVIDIA

i never had a problem with an ati card and they have much better picture quality. ati had given it hard to nvidia before (9700/9800) and ther poised to do it again and i hope they flush them down the damn drain for good this time for what they did to 3dfx!

Outlook Not So good For NVIDIA

However, AMD/ATI's drivers still suck, especially the Linux drivers (the drivers for notebook graphics are so buggy you can't even use a browser without display corruption). NVidia's drivers are much more stable and new drivers almost always improve the graphics performance.And don't forget about the nForce chipsets, they just pwn AMD's and Intel's chipsets.

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