nVidia 2nd Quarter Results

[akugami]

nVidia reporting second quarter loss.

 

[Leon]

They actually reported a profit, not counting one time charge.

 

[Pantalaimon]

Originally posted by: Leon
They actually reported a profit, not counting one time charge.

Or more like a second time charge 🙂

So now the whole mobile graphics chip debacle has cost NVIDIA 300+ million dollars.

 

[Idontcare]

Originally posted by: Pantalaimon
So now the whole mobile graphics chip debacle has cost NVIDIA 300+ million dollars.

You can bet they won't be making that mistake again. These Q&A type lessons-learned opportunities have a way of really making companies more robust at a whole new level.

I've seen it firsthand, its like a wakeup call to management and the groups tasked with the job gain a whole new level of authority and budget to ensure protocols and methodologies are in place to prevent future occurrence.

It can go the other way though too if the internal paranoia over Q&A gets too far out of hand, with future products being so ridiculously over-engineered in the packaging dept so mush so that it results in unacceptably higher production costs (lower margins).

Its also a real opportunity for foundry business to migrate. Anyone else remember when Xilinx gave up on IBM's foundry process at 90nm because the SiLK low-k dielectric they were using in the BEOL was giving Xilinx massive field failure issues?

Xilinx shifted the bulk of their 90nm production to UMC thereafter even though IBM moved away from SiLK and adopted a more traditional carbon doped silicon oxide dielectric.

So who is going to benefit from Nvidia's lesson-learned here? Could be more line-items in the "pro" column for a shift to GF's down the road... In the meantime you can be pretty darn sure that the failure point in future gen NV chip is going to be anything but the packaging, and thats good news for us end-users (even if it means costs might be a skosh higher).

 

[akugami]

Just had time to look over some of the results of the report. Yeah, that weak packaging for their mobile CPU's has really really hurt them. Other than that, very nice results.

Next round of the GPU wars is really going to be interesting. ATI has garnered a bit of good will and is actually competitive lately, though we'll of course have to see actual benchmarks and performance numbers before we can really predict how that will turn out. While nVidia was force to lower prices, they still did incredibly well considering how competitive ATI was from a price/performance standpoint as well as how weak the economy is.