Nvidia's Profits Rise

[SirPauly]

The part that surprised me was the over-all margins and the percentage of .40 GPU revenues.

Also enjoyed the CEO using the word "fabulous" when talking about Fermi -- may be a first in the industry to use that word, hehe!

 

[Idontcare]

He wasn't chewing a piece of Orbitz gum at the time by any chance, was he?

 

[exar333]

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

Hmm...they had about 1.5B in cash at the end of 2007, and now they have about 2B in cash, with profits on the rise. Sounds like they did OK.

Don't get me wrong, NV is struggling right now with getting Fermi out the door and the cost of their G200 parts, but give me a break. The company would have had decent 2008 profits if they didn't have all the costs (read: write downs) for their mobile GPU and chipset woes.

 

[SirPauly]

He wasn't chewing a piece of Orbitz gum at the time by any chance, was he?

LOL!

Just thinking of the CEO with a sparkle on his smile when saying that about Fermi, hehe!

Orbitz commercial:

http://www.youtube.com/watch?v=WEJJUGJZxpU

 

[Genx87]

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

Why dont you just say it in this thread? Obviously your expectations were such you can easily recite them.

 

[AnonymouseUser]

The part that surprised me was the over-all margins and the percentage of .40 GPU revenues.

Also enjoyed the CEO using the word "fabulous" when talking about Fermi -- may be a first in the industry to use that word, hehe!

400 nm? Don't you mean .040 µm?

 

[SirPauly]

400 nm? Don't you mean .040 µm?

Should of just offered this: "40-nanometer" -- my apologies.

 

[MrK6]

Why dont you just say it in this thread? Obviously your expectations were such you can easily recite them.

I suppose it's too much to ask for people to read for their own. I'm in rounds, so this will be brief.

Hmm...they had about 1.5B in cash at the end of 2007, and now they have about 2B in cash, with profits on the rise. Sounds like they did OK.

Don't get me wrong, NV is struggling right now with getting Fermi out the door and the cost of their G200 parts, but give me a break. The company would have had decent 2008 profits if they didn't have all the costs (read: write downs) for their mobile GPU and chipset woes.

That's part of my point. 2008, despite some set backs, was a good year for them. What do you think 2009 is looking like? They've had little excess cost producing their mid-range and lower-end GPUs (save the 40nm parts, but the rest are a refresh of a refresh of a refresh), which should amount to large margins. I would have expected them to do better. I'm guessing the loss of their chipset ventures, notebook/mobile GPU issues, and 40nm parts are all partly to blame. This is looking into the future, but Fermi really needs to get out the door before the projected January/February deadline. Also, I don't know much about the fabbing/manufacturing process, but AMD has a finished product that it's having difficulty getting the production it wants, how much of a stab does NVIDIA get monkeying around trying to perfect a design? Also, with the GPGPU venture, it's a new market to explore, but how big is it? One thing I would question is the software there for it?

I just see the company as contracting, which is not good for competition. For a quick comparison: http://finance.yahoo.com/echarts?s=...=on;ohlcvalues=0;logscale=on;source=undefined Granted this is AMD as a whole vs. NVIDIA, but I think it somewhat highlights the current situation and marketing strategies. I always look to the future to try to predict where things are going. We shall see I suppose.

 

[shangshang]

NV is doing surprisingly fine. Tegra must be doing good. However, I think the real future for NV is still in the mobile/handheld market, not desktop gaming market. It would be a little ironic if NV left the hardcore desktop gamers for ATI pickin.

 

[OCGuy]

Wow, so much for doom and gloom at nV!

 

[IlllI]

i think the majority of computer sales are for the least expensive gpus. look at intel. they have like 70% of total market, but only sell those crappy integrated graphics.

 

[BenSkywalker]

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.

Charlie made it quite clear that nVidia was about bankrupt, and there are more then a few on these forums that have bought it hook line and sinker. We have also been hearing about how badly the 4xxx series has dominated the market for a while, how nV's chipset division imploded and they aren't making any money on GPUs with the integrated devices being a major source of loss.

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.

You are correct about the pricing, it was November that they were down to $5.40, how time flies.

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

They are currently in Q4 2010, so I assume what you are saying is that nV has made staggering progress in the last ~2 years?

What do you think 2009 is looking like?

http://www.nvidia.com/object/io_1234300989054.html

We don't have to think, it was reported in detail in Feb.

I just see the company as contracting, which is not good for competition. For a quick comparison: http://finance.yahoo.com/echarts?s=N...urce=undefined Granted this is AMD as a whole vs. NVIDIA, but I think it somewhat highlights the current situation and marketing strategies.

Share volume traded? Seriously?

http://finance.yahoo.com/echarts?s=...pe=line;crosshair=on;ohlcvalues=0;logscale=on

By that same metric AMD is slaughtering Berkshire Hathaway. Let's be realistic here.

As of right now with their current cahsflow situation nVidia could produce everything they currently are plus Fermi maintaining the same volumes in each market they do throughout the current year and give everything away for free without running out of money. By way of comparison, AMD ran out of money many years ago. nVidia isn't remotely close to anywhere near in serious financial trouble and wouldn't be for a long time after they started reporting AMD type losses for years.

 

[Janooo]

...
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

Keys, so you are graphics moderator again?

 

[Markfw]

Keys, so you are graphics moderator again?

He is a primary cpu mod, but he can mod almost any forum There are many graphics mods. I am one also, but I don't come here as often as the cpu forum.

 

[Keysplayr]

Keys, so you are graphics moderator again?

No longer a category moderator.

 

[Cookie Monster]

Keys is the "super" moderator

 

[Idontcare]

No longer a category moderator.

Congrats!

 

[Janooo]

No longer a category moderator.

... but the reason why you decided not to be the graphics moderator before didn't go away, did it?

 

[Keysplayr]

... but the reason why you decided not to be the graphics moderator before didn't go away, did it?

Yes, it did. Do you know the reason?

 

[Markfw]

Yes, it did. Do you know the reason?

I sure would like to know.

 

[bryanW1995]

Yes, it did. Do you know the reason?

Are you not in the focus group anymore? What happened?

 

[Keysplayr]

Are you not in the focus group anymore? What happened?

Really isn't the proper place here. PM me if you want to talk about it. I'll return all PM's.

 

[Janooo]

Yes, it did. Do you know the reason?

Your personal decision.
One can say you gave in to the pressure of this forum.
Would you care to explain what changed?
Thanks...

 

[Keysplayr]

Congrats!

TY