A familiar rival, ATI of Markham, Ontario, came out with a new graphics chip in September that took away the performance crown that Nvidia held for several years. Nvidia's own competing chip, which had been due in August, has only just come out.
Sales of Microsoft's Xbox game console, which features a couple of Nvidia chips, have been disappointing, and Nvidia is in a legal dispute with Microsoft over the chips' price.
Nvidia has developed chips to complement Advanced Micro Devices' coming Hammer family of microprocessors, but the Hammer keeps missing its release date.
Disappointing PC sales prompted Nvidia to report lower-than-expected earnings for the third fiscal quarter, ended Oct. 27.
And investors have pounded Nvidia's stock, sending it from about $75 a share at the start of 2002 to about $10 now. . . .
How badly Nvidia has been hurt by ATI is unclear. As of the third calendar quarter, Nvidia had 32 percent of the graphics-chip market, compared with 19 percent for ATI, according to market researcher Mercury Research in Cave Creek, Ariz. Mercury analyst Dean McCarron says preliminary fourth-quarter results show little market-share change. . . .
Yet there is evidence that ATI is gaining ground. ATI President Dave Orton said the company has picked up new customers, selling chips for Dell Computer's Dimension product line and Hewlett-Packard's Compaq Presario desktops.
And by the time Nvidia gets the GeForce FX to the market, ATI will be almost ready to launch a low-cost version of last fall's chip, a project that is code-named the R350.
Still, Orton isn't gloating. ``We respect Jen-Hsun,'' said Orton. ``We know he is not standing still, and we aren't either.''