by Anton Shilov
08/07/2009 | 10:39 PM
Chief executive officer of Nvidia Corp. said that the company does not expect to lose its core-logic business next year, despite of obvious obstacles on the way of the graphics company. In addition, Jen-Hsun Huang advised financial analysts to “wait for the big surprise” in the chipset-related dispute between Intel Corp. and Nvidia.
“We do not actually expect much loss in our chipset business next year. We have quite a few exciting projects that we are still working on; people are pushing us really hard to get more chipsets done. So we are not expecting the decline of it, but we are expecting adoption to increase for GPUs next year,” said Mr. Huang during the most recent conference call with financial analysts.
Starting next year Nvidia will not be able to sell chipsets for AMD Opteron microprocessors, Intel Core i3/i5/i7 series processors with or without integrated graphics, next-generation Intel Atom chips code-named Pineview and so on.
Apparently, the head of Nvidia referred to current-generation core-logic sets aimed at microprocessors by Advanced Micro Devices and Intel Corp. When asked to clarify whether Nvidia has resolved legal dispute with Intel and can now develop chipsets for next-generation Intel chips, Mr. Huang pointed out that Nvidia is not developing core-logic sets for Intel’s future microprocessors.
“You did not ask specifically about the future and neither did I comment about that, so it is not related, [the comment] is just not related [to future chipsets]. We are not necessarily building chipsets for future Intel buses. We’ve not commented anything on that and so you are just going to have to wait to see what we come up with […] One thing that you can probably say about our company is we are pretty darn clever. There is a lot of ways to skin the cat and we are going to show you more ways to skin the cat than you can shake at and so you just have to wait,” said chief executive officer of Nvidia.
In a rather intriguing manner Mr. Huang advised the analysts to expect a “big surprise” in the dispute between Intel and Nvidia over chipsets.
“I cannot give you the punch line and you just have to wait for the big surprise,” said Jen-Hsun Huang.
Core-logic business is still very important for Nvidia. In the second quarter of its fiscal 2010, chipset business accounted for 31% of Nvidia’s revenue, up 27% quarter-over-quarter. The lion’s share of Nvidia’s chipsets featuring built-in GeForce graphics core, hence, the company risks losing market share as soon as Intel and AMD release microprocessors with integrated graphics cores.
Nvidia this week reported revenue of $776.5 million for the second quarter of fiscal 2010 ended July 26, 2009, down 13% from $892.7 million a year earlier, and up 17% from the previous quarter. On a GAAP basis, the company recorded a net loss of $105.3 million, or $0.19 per share, compared with a net loss of $120.9 million, or $0.22 per share a year ago.