Nvidia's Profits Rise

[brybir]

http://online.wsj.com/article/BT-CO-20091105-723488.html


The only thing interesting about this article is that it says that demand was high for its "40nm" products. Must be lots of OEM's buying low end cards these days. Then again, I guess they always have been.

 

[Idontcare]

Aren't their mobile chips transitioned to 40nm now as well? It might not just be low-end driven, could be they are making good margins on 40nm laptop chips as well.

 

[Cookie Monster]

Im not sure if any mobile parts from nVIDIA are 40nm. MCP79 (9300/9400 series) are all on 55nm, while the other discrete mobile GPUs are 55nm. Guessing that the mobile GPUs will transistion to 40nm with the 3x0 mobile series from nVIDIA. I doubt these are Fermi based.

The only 40nm products from nVIDIA are GT218/216. Add GT214 which will be joining the list soon enough.

 

[BenSkywalker]

Breakdown for non WSJ subscribers.

http://www.tmcnet.com/usubmit/2009/11/05/4466646.htm

Looks like nVidia had a very good quarter, revenue up sharply, profits up sharply and double the margins. Yep, Charlie sure knows what he is talking about

 

[brybir]

Breakdown for non WSJ subscribers.

http://www.tmcnet.com/usubmit/2009/11/05/4466646.htm

Looks like nVidia had a very good quarter, revenue up sharply, profits up sharply and double the margins. Yep, Charlie sure knows what he is talking about

Whats crazy is that when I linked the article it did not do that cutoff thing it is doing now. Wonder if they have some system that notes when an article is popular (or perhaps not popular as it may be) and does that cutoff thing.

Weird.

 

[Stoneburner]

That's third quarter ending October, right? It's the current quarter they need to worry about.

 

[Idontcare]

When is that not the case, for any business?

 

[Genx87]

That's third quarter ending October, right? It's the current quarter they need to worry about.

They are predicting a 2% rise in revenues and margins in the 40-42% range for the 4th qtr. Nvidia is diversifying into hand helds and other areas and will only continue to do so once Fermi arrives.

 

[BenSkywalker]

That's third quarter ending October, right? It's the current quarter they need to worry about.

Is the because of the huge spike in Tegra sales? That they are flushing inventories thus reducing overhead enormously, or is it because ATi has nothing readily available to compete anywhere over the $200 price point?

There is a staggering difference most of the time to what consumers think is good business, and what actually is. This quarter has all the markings of being a huge one for nVidia, the potential issue is if nV runs past Q1 without Fermi and TSMC gets yields to acceptable levels on 40nm for ATi. OEMs, which are still the bread and butter of this market, are going to be very hesitant to touch a part with the availability of the 58xx atm, that is just a business reality. The 'danger' to nV is less this quarter then it has been for quite a while. Next quarter, if things go absolutely ideal for AMD, they may have reason for concern.

 

[zmatt]

They are predicting a 2% rise in revenues and margins in the 40-42% range for the 4th qtr. Nvidia is diversifying into hand helds and other areas and will only continue to do so once Fermi arrives.

Good idea, because they won't have a legitimate competitor in the high end graphics segment for a long time. Luckily for Nvidia, financially that doesn't mean much as little money is made there. But it will do a lot to their reputation.

 

[Wreckage]

Take it with a grain of salt because it's from Fudzilla....but
http://www.fudzilla.com/content/view/16275/1/

Demand for Geforce GTX 260 cards still huge

 

[AnonymouseUser]

Whats crazy is that when I linked the article it did not do that cutoff thing it is doing now. Wonder if they have some system that notes when an article is popular (or perhaps not popular as it may be) and does that cutoff thing.

Weird.

If you click on the link from a Google search you get the whole article, otherwise you need to be a subscriber. It's a deal WSJ has with Google.

Google link - follow either of the first two links.

Original direct link - only partial story

 

[MarcVenice]

I think Tegra for example was quite a good move. But to me it's not surprising that Nvidia is still a healthy company. It's just like with AMD, where people would predict their downfall, that it couldn't survive. AMD just only recently introduced the 5000 series and can't meet demand, why would this be the killing blow to Nvidia? GPU sales from Nvidia will be down next quarter, but what will be most interesting is to see how they do other area's, because thats what they are trying to do (or are doing), diversify.

As for the gtx260 still being popular, it makes sense. It has always been on par with a HD 4870 1GB in terms of price. It beats the HD 5770, although not by to much. Many people doubt between a 5770 and a 4870 1GB, so why shouldn't they also doubt between a 5770, 4870 and a gtx 260?

 

[T2k]

Is the because of the huge spike in Tegra sales? That they are flushing inventories thus reducing overhead enormously, or is it because ATi has nothing readily available to compete anywhere over the $200 price point?

There is a staggering difference most of the time to what consumers think is good business, and what actually is. This quarter has all the markings of being a huge one for nVidia, the potential issue is if nV runs past Q1 without Fermi and TSMC gets yields to acceptable levels on 40nm for ATi. OEMs, which are still the bread and butter of this market, are going to be very hesitant to touch a part with the availability of the 58xx atm, that is just a business reality. The 'danger' to nV is less this quarter then it has been for quite a while. Next quarter, if things go absolutely ideal for AMD, they may have reason for concern.

Jesus, BenSky, you're PATHETIC. Seriously, after being badly beaten by your own masters - you were defending NV's utter BS WRT deliberatly locking out ATI cards from Batman by caliming it's true until suddenly the developers/NV came forward and said so - now you are selling your newer BS about "flushing inventories thus reducing overhead"...


...which means, in pure English, that they had no CHANCE to sell those now-outdated-overpriced cards so they quickly lowered the price and sold them as fast as they could to avoid later writedowns.

Huge spikes in Tegra sales? Gee, let me see: maybe even $100M-range?
It's mobilephone and handheld market, profits are way lower than in CUDA/WS business.

Uh-ohh, let's not forget the fact that Nvidia killed its entire Apple market for a several years when refused to address the issue of the tens of thousands of bug-ridden, faulty Macbook-chipsets - and God knows how well HP and Dell took it their tens of thousands of faulty Nvidia chips....

DId I mention they shut down their entire chipset business, ONE-THIRD of their INCOME?

No products for the PC market whatsoever, mobile integrated market was badly if not fatally damaged and of course, no GT300, not even a bug-free, working sample... :twisted:

Yeah, those "spiking Tegra sales" will indeed save the current quarter, sure.

T2k: First warning. Watch the personal insults. Debate the subject matter. This isn't about what you think about the poster for having an opinion. Anandtech Moderator - Keysplayr

 

[T2k]

I think Tegra for example was quite a good move. But to me it's not surprising that Nvidia is still a healthy company. It's just like with AMD, where people would predict their downfall, that it couldn't survive. AMD just only recently introduced the 5000 series and can't meet demand, why would this be the killing blow to Nvidia? GPU sales from Nvidia will be down next quarter, but what will be most interesting is to see how they do other area's, because thats what they are trying to do (or are doing), diversify.

NOone ever said they are on the verge of bankruptcy - but they are facing very tough times.

Diversification, my @ss - Anand pointed out very well few weeks ago: short of x86 licence and facing inevitable CPU-GPU fusion from AMD they are trying to find their own future market, namingly CUDA/GPGPU, to ensure revenues.

As for the gtx260 still being popular, it makes sense. It has always been on par with a HD 4870 1GB in terms of price. It beats the HD 5770, although not by to much. Many people doubt between a 5770 and a 4870 1GB, so why shouldn't they also doubt between a 5770, 4870 and a gtx 260?

Perhaps because it's the slowest and most outdated of all at the same price...?

 

[Cookie Monster]

nVIDIA doesn't need an x86 license. This is why they have invested millions into Tegra/ARM. The whole netbook market is still left untouched, and with future OSes supporting ARM based netbooks, this was a very smart move by nVIDIA. Its going to get rough for x86 based netbooks because of the advantages that ARM will bring. Handhelds, namely touch screen phones are also becoming the next big thing and I can see Tegra being chosen over other hardware out in the market today. I dont see why people expect nVIDIA to enter into an old market (x86) where theres nothing to do but bleed money.

The whole fusion thing might bring nVIDIA into trouble in the low end where most of the revenue is generated, but it really depends on how the whole CPU-GPU turns out. One thing for sure is that discrete GPUs will always be around because these are all aimed at the low end.

The most interesting thing will be the whole GPGPU business. These could break or make them because of the amount of money invested into this market. If they are successful and gain traction in this market, they would probably make bucket loads of cash. For reference a single Tesla GPU sells for $5000~ dollars (this is same GT200 core).

 

[Acanthus]

don't forget that this quarter last year was abysmally bad.

Nvidia has had a poor showing so far this year on the high end. Fermi needs to come out sooner rather than later.

The war with INTC was enough for me to jump ship from my NVDA stock.

 

[nemesismk2]

I am sticking with my Nvidia stock right now but if Fermi is no good then I will have to reconsider.

 

[BenSkywalker]

Seriously, after being badly beaten by your own masters - you were defending NV's utter BS WRT deliberatly locking out ATI cards from Batman by caliming it's true until suddenly the developers/NV came forward and said so - now you are selling your newer BS about "flushing inventories thus reducing overhead"..

Flushing inventory channels is normal business when launching a new generation of technology and it most certainly reduces overhead.

...which means, in pure English, that they had no CHANCE to sell those now-outdated-overpriced cards so they quickly lowered the price and sold them as fast as they could to avoid later writedowns.

Big price drops? Cool, where?

Uh-ohh, let's not forget the fact that Nvidia killed its entire Apple market for a several years when refused to address the issue of the tens of thousands of bug-ridden, faulty Macbook-chipsets - and God knows how well HP and Dell took it their tens of thousands of faulty Nvidia chips....

DId I mention they shut down their entire chipset business, ONE-THIRD of their INCOME?

No products for the PC market whatsoever, mobile integrated market was badly if not fatally damaged and of course, no GT300, not even a bug-free, working sample...

Yes, it is true, despite all of that they still posted a profit ten times what ATi did. This is a great example of how profoundly ignorant most people are to the business world. Most of them can't see how operating from a business perspective doesn't always please the profoundly ignorant

The war with INTC was enough for me to jump ship from my NVDA stock.

nV stock was at 5 and change this summer when the fighting with Intel was heating up. It's at 13 and change now.

 

[MrK6]

Yes, it is true, despite all of that they still posted a profit ten times what ATi did. This is a great example of how profoundly ignorant most people are to the business world. Most of them can't see how operating from a business perspective doesn't always please the profoundly ignorant

Kind of like you, amirite? You're comparing two very different companies that compete only in one market, and insisting that the benefits and profits of business strategies are realized almost immediately. Wow.

nV stock was at 5 and change this summer when the fighting with Intel was heating up. It's at 13 and change now.

The lowest it ever went this summer was ~$8.50, with a maintained average of ~$11.50-12.00 for the whole summer. They had a peak early in September that has been steadily declining since, which is more than understandable given their current situation.

 

[Wreckage]

http://www.nvidia.com/object/io_1257455428199.html

* Revenue up 16 percent quarter-on-quarter to $903.2 million
* GAAP net income of $107.6 million, or $0.19 cents per diluted share
* GAAP gross margin of 43.4 percent; non-GAAP gross margin of 41.0 percent
* Cash flow from operating activities of $141.3 million; free cash flow of $124.7 million


* First major Tegra™ devices shipped: Microsoft’s Zune HD and the Samsung M1.
* Held first ever GPU Technology Conference, which was 50% oversubscribed, with 1,500 attendees from 40 countries. More than 200 technical sessions were conducted, and presentations were made by 60 emerging companies that utilize the graphics processing unit (GPU).
* Introduced the next generation CUDA™ GPU architecture, codenamed "Fermi." The Fermi architecture is the foundation for the world’s first computational GPUs, delivering breakthroughs in both graphics and parallel computing.
* Oak Ridge National Laboratory announced plans to use Fermi to build a new supercomputer, which is designed to be the world’s fastest.
* Launched the industry’s first development environment for massively parallel computing. The tool, code-named "Nexus", is integrated into Microsoft Visual Studio, so that developers will be able to use Visual Studio and C++ to write applications that leverage Fermi GPUs.
* Launched NVIDIA® RealityServer®, a powerful combination of GPUs and software that streams interactive, photorealistic 3D applications to any web connected PC, laptop, netbook or smart phone.
* Adobe’s new Flash Player 10.1 will be accelerated by GeForce®, NVIDIA ION™ and Tegra™ products, helping to bring uncompromised browsing of rich Web content to netbooks, smartphones and smartbooks.

 

[MrK6]

http://www.nvidia.com/object/io_1257455428199.html

Hmm, they are in a much worse financial situation than I thought. Hopefully Fermi is released sooner than later and meets some success in the GPGPU market (which seems to be the goal) so that the money is available to produce something for the consumer market. Unfortunately, it's anyone's guess as to the likelihood of this proceeding as stated.

 

[Genx87]

Hmm, they are in a much worse financial situation than I thought. Hopefully Fermi is released sooner than later and meets some success in the GPGPU market (which seems to be the goal) so that the money is available to produce something for the consumer market. Unfortunately, it's anyone's guess as to the likelihood of this proceeding as stated.

What were your expectations if they are in "much" worse financial situation that you thought? Apparently you and Wall Street dont share the same opinions. Perhaps you will want to let them know?

 

[MrK6]

What were your expectations if they are in "much" worse financial situation that you thought? Apparently you and Wall Street dont share the same opinions. Perhaps you will want to let them know?

Google "NVDA financial 2008." Let me know if anything isn't clear.

 

[SirPauly]

Profits, margins and revenues are impressive and would be even more-so if nVidia could get product out and actually missed out on another 100 million or so and some-how Batman AA is introduced into it -- with venom, too!

LOL! Forums are magical places!