Feeds

Nvidia hit by GPU slump, too

Tegra 2 stepped on by Tegra 3

Internet Security Threat Report 2014

Microprocessor and GPU maker Advanced Micro Devices said yesterday that its financial results had been whacked by an unexpected downturn in discrete graphics processor sales in the fourth quarter, and Nvidia now says it had the same problem.

In a statement, Nvidia put the blame squarely on the disk shortage that has been caused by the flooding in Thailand last year, which has put a damper on PC sales in the second half of 2011. The current theory at AMD is that the disk shortages have been most dramatic on the fatter disks used in desktop PCs, which generally have a discrete graphics card instead. With disks in short supply and prices rising, PC sales slumped and took down GPUs with them. Nvidia echoed those comments.

"The global disk-drive shortage caused by the flooding in Thailand had more impact on the mainstream GPU segment than anticipated," Nvidia said in its statement. "Shipments by some PC OEMs were reduced. And the higher prices of disk-drives constrained some PC OEMs' ability to include a GPU in their systems."

It is interesting to ponder if Nvidia was also hurt by the expectation that it will be shipping its next generation "Kepler" GPUs, due sometime this year and initially expected at the end of last year.

Nvidia also said that its dual-core Tegra 2 ARM-based system-on-chip processors declined more rapidly than expected in the wake of the launch of the quad-core Tegra 3 SoCs, which are ramping in production during the first quarter of this year.

When you add it all up, Nvidia now says that revenues for fourth quarter of 2011 will range from $940.5m to $959.5m. This is considerably lower than its prior guidance from early November, when Nvidia expected sales to fall between $1.045bn and $1.087bn.

Nvidia will report its fourth quarter results on February 15. ®

Internet Security Threat Report 2014

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
VMware's tool to harden virtual networks: a spreadsheet
NSX security guide lands in intriguing format
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.