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The head of Nvidia Corp. does not believe that competing ATI FirePro family of graphics cards can represent a threat for Nvidia's Quadro lineup and win a substantial piece of the market.

"[Professional graphics] is an area where we have a great deal of passion for and one, in which we do an extremely good job. So, the bar is pretty high and we are not seeing any significant competitive changes out there that we notice right now," said Jen-Hsun Huang, chief executive officer of Nvidia, during the most recent conference call with financial analysts.

Nvidia Quadro is indisputably one of the most known brand on the market of professional graphics. For years competing solutions from ATI, graphics business unit of Advanced Micro Devices) have either lacked certain features or simply had issues with software or performance.  But with the launch of the latest FirePro V8800 the situation improved seriously as the solution got both design wins as well as certifications from plenty of software vendors. Still, Jen-Hsun Huang, the chief executive officer of Nvidia, is not convinced that ATI can actually capture a serious share of the professional graphics accelerators market.

A reason why Jen-Hsun Huang is so confident of the Quadro lineup is because the new Fermi-based breed offers tangible geometry performance improvements over predecessors as well as over competing solutions. Based on SPECviewperf 11 benchmark results, Nvidia Quadro 5000 outperforms ATI FirePro V8800 solution by 30% - 100%. Another reason is because along with Quadro the Santa Clara, California-based company ships plenty of special-purpose tools for various workloads, which greatly simplify and speed up work of not only graphics, but also medical imaging and other professionals.

"The workstation market is not about a graphics chip, it is not about a graphics card, and this is something that the vast majority of our competition just no longer understands. People are not buying our Quadro solution a chip at a time. They are trying to solve a problem. It could be that they are trying to ray-trace a car, so that they could see a photorealistic image of it while they are trading off various designs. It could be that the data set is just absolutely enormous and they need to have the scalability and the scalable solutions that we provide," explained Mr. Huang.

In Q2 of its fiscal 2011 Nvidia's professional solutions revenues increased to $215.1 million thanks to increase in sales of Tesla compute accelerators and Quadro professional graphics accelerator. At present Nvidia commands over 80% of the professional graphics cards market, according to brief estimates.

Tags: Nvidia, Quadro, Business

Discussion

Comments currently: 11
Discussion started: 08/14/10 06:29:48 AM
Latest comment: 08/18/10 01:34:03 AM
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[1-8]

1. 
Seems Nvidia didnt expect nothing at all...and the best is yet to come.

[11/13/2009 05:42 PM]
by Anton Shilov

Jen-Hsun Huang: I am All Apple

http://www.xbitlabs.com/n...f_Lack_of_Innovation.html


Apple Mac Pro - Now With Faster Graphics from AMD.

July 2010

All-new high-performance graphics cards from AMD make Mac Pro graphics technology up to 5 times faster than ever before.1 Perfect for motion graphics, 3D modeling, rendering, or animation, the ATI Radeon HD 5770 with 1GB of GDDR5 memory comes standard. It not only provides faster performance compared to previous Mac Pro standard graphics cards — it’s also faster than the top-of-the-line graphics cards in the previous generation.

http://www.apple.com/macpro/features/graphics.html


0 0 [Posted by: bereft  | Date: 08/14/10 06:29:48 AM]
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2. 
Bereft,perhaps you can't read. Nvidia owns the high end professional workstation market at more than 80%. Their market share has increased. Apple is a small niche, about 5%.
0 0 [Posted by: beck2448  | Date: 08/14/10 10:15:58 AM]
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- collapse thread

 
The professional GPU market is less than 0.1% of the total PC (Desktop and Laptop) market. Having 80% of 0.1% is not that much. Good for nVIDIA though. There're doing a good job there.

IF Apple has 5% of the PC market (Desktop and Laptop), having 100% of the 5% slice Apple has, is much MUCH more.

I'll do a little more research later to see what's the revenue levels.
0 0 [Posted by: East17  | Date: 08/15/10 06:17:17 AM]
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3. 
With 80% of the market and huge margins they made 215 million dollars. If they had 100% of the market and higher margins they could make, how much, let's say 300 millions?
They made 550 million in a very bad quarter from desktop gpus. This is why AMD is not interested, yet, for a full scale attack in the professional market. Jen-Hsun Huang is right. It is not only the chips, it's the software too. But if they lose the desktop market, they are going to lose the professional market in the future too.
0 0 [Posted by: john_gre  | Date: 08/14/10 11:26:13 AM]
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4. 
When he open his big mouth, something worst happen to nvidia
It's better be naive ,,, Mr Jen-ego...
0 0 [Posted by: Cosmos  | Date: 08/14/10 01:51:22 PM]
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5. 
@beck2448
%80 of a very small market doesn't do Nvidia's shareholders any good. The tegra is about the only thing keeping them alive.

They need to change CEO's and get off the ego trip and back into R&D and deliver on time. Nvidia was so arrogant to think that it didn't matter how late they were to the DX10.1 then DX11 markets, but it did. So much so I am beginning to wonder whether Nvidia is going to have to file for re-organization.
0 0 [Posted by: fdunn  | Date: 08/14/10 08:17:10 PM]
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6. 
Good for nVIDIA for their current line of Quadro and TESLA products. But really ATi is playing a good catch-up game on the Pro market and it's doing so at a much lower price which can only be good for the Pro users.

Also, ATI is planning to launch their new DX11 GPU this winter, what's nVIDIA launching this year? a fully working DX11 GPU ? That's not that impressive.

This is just the desperate way nVIDIA's boos reacts when they don't have a weapon to defend themselves. Remember the “glass plates” they've thrown at AMD's door when AMD launched their DX11 line? Those “glass plates” had a PLASTIC MOCKUP painted on them . The MOCKUP of nVIDIA's DX11 solution
0 0 [Posted by: East17  | Date: 08/15/10 06:23:09 AM]
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7. 
I remember when nVidia wouldn't even consider ATI a competitor (went as far as not even mentioning their name), and then 48xx and 58xx series came out and dominated nVidia's offerings. Good to see nvidia hasn't learnt from history yet.

And Tegra, look at their previous earnings, Tegra and 'other' only counted for 1/16 of their total earnings (not sure what portion of profit). I'm not saying nvidia is doomed, but Tegra isn't their future, no more than Imageon was ATI's (now Broadcom's).
0 2 [Posted by: genie  | Date: 08/15/10 08:51:13 PM]
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8. 
while its technically true that AMD is not even a threat to nvidia in that infinitesimal market segment, its not because
and this is something that the vast majority of our competition just no longer understands.

AMD designed their HD5000 series chips with a look at the desktop gaming, the largest market segment for GPUs by far, nvidia designed their GTX400 series chips with GPGPU in mind, the smallest market segment for GPUs. (a GTX480 is actually 8x faster then its predecessor in some GPGPU workloads)...

the result in that the GTX400 series chips are hot, huge, expensive, power hogs, under performers and effectively can't compete in gaming, the largest market... while AMD effectively can't compete in the smallest market.

nvidia CEO wishes he had a CPU company, and is converting it to one... but at the cost of their primary money maker.
0 0 [Posted by: taltamir  | Date: 08/16/10 12:15:39 AM]
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- collapse thread

 
nvidia CEO wishes he had a CPU company, and is converting it to one... but at the cost of their primary money maker.


I wouldn't go that far. nVIDIA's doing alright in the GPU market.
0 0 [Posted by: East17  | Date: 08/17/10 12:10:28 PM]
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they had AMD on the ropes for years... and with the last gen the situation is reversed. with nvidia eating higher costs and lower profit margins for the first time. (for years it was the other way around, with nvidia getting 200%+ PROFIT per chip sold)... but they can claim that there is not competition for them in the GPGPU market (which is true)
0 0 [Posted by: taltamir  | Date: 08/18/10 01:34:03 AM]
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