Nvidia Drastically Reduces 4Q Outlook

Posted 01/16/2009 at 10:18am | by Paul Lilly

2

Comments

Print

Nvidia this week revised its fourth-quarter outlook saying its revenue is expected to plunge at least 40 percent sequentially, and possibly as high as 50 percent. The graphics chip maker blames the revised estimate on a one-two punch of weakening end-user demand and inventory reductions by channel partners. Nvidia didn't have much more to say on the matter, other than that no conference call will be held regarding the update and we'll have to wait until February 10, 2009 when Nvidia reports its financial results for the fourth quarter of fiscal 2009.

While everyone seems to be struggling in a weakened economy, and Nvidia in particular is coming off a year plagued with negative PR over GPU failures, the company appeared to be righting its ship by landing some big contracts. Earlier reports showed several global top-tier notebook vendors jumping on board Nvidia's 9400M graphics, including Apple, who ditched Intel in favor of Nvidia to supply the graphics chipset for the refreshed MacBook line. But this latest revenue warning trumps other big players in the tech market, such as AMD, Intel, and LSI who recently offered revised guidance ranging from 15 to 25 percent lower sequentially.

Meanwhile, we're still waiting for Nvidia to make good on its promise to "open a can of whoop ass."

Image Credit: Nvidia