AMD/ATI hits Nvidia where it hurts

"Nvidia have recorded their first quarterly loss in six years."

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It's a two horse race again!

Nvidia records quarterly lossIt looks like AMD/ATI's recent regain in popularity within the discrete GPU market is starting to hurt Nvidia's profits, amongst other reasons. They have recorded a net loss of $120.9 million for the second quarter of this year. This is the first time in six years that Nvidia have recorded a quarterly loss.

Revenue decreased to $892.7 million compared to $935.3 million for the same period last year, a decrease of five percent. Due to problems with certain notebook GPU failures, the company also had to write off $196 million. There has also been a decline in demand for new GPU's. Nvidia have admitted that their pricing structuring prior to the release of the Radeon 4800 series was wrong and hurt their profits too.

Mr. Jen-Hsun Huang, president and CEO of Nvidia, said in a press statement:

"Our Q2 financial performance was disappointing. The desktop PC market around the world weakened during the quarter. And our miscalculation of competitive price position further pressured our desktop GPU business. We have a great product line-up and, having taken the necessary pricing actions, we are strongly positioned again. Our focus now is to drive cost improvements and to further enhance our competitiveness through the many exciting initiatives we have planned for the rest of the year, in contrast, the rest of our businesses did not exhibit the same dynamics as our desktop business. The notebook GPU, MCP, and Professional Solutions groups grew a combined 27 percent year-over year.

 
 
You can view the full press statement here.
 
Discuss in our forums here.
 
 
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Most Recent Comments

08-08-2008, 11:02:42

ymp3101
Just saying hello ;) - pretty new to all this stuff and will no doubt be coming back for loads and loads of advice so I hope you'll be patient with me!!

08-08-2008, 11:05:36

Jim
welcome ymp3101...quite a mouthful of a username u got there

08-08-2008, 11:10:20

ymp3101
Why, thank you kind Sir! Mouthfuls I do well!! (trained chef!)

08-08-2008, 11:20:01

mrbios

Why, thank you kind Sir! Mouthfuls I do well!! (trained chef!)



That would of SO been taken the wrong way had you not told us you were a chef :p

08-08-2008, 11:45:18

ymp3101
Mistress of the double entendre, me! ;) (see the trouble being naive gets you into?!)

08-08-2008, 15:09:27

Jim

Why, thank you kind Sir! Mouthfuls I do well!! (trained chef!)




You REALLY did have me worried there!

Will you cook for free hardware?

09-08-2008, 11:02:45

Kempez
Hi mate, nice to see ya here :hello:
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