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Nvidia Shares Fall After Analyst Says Company is Leaving Chipset Business

Posted 10/08/08 at 09:44:52 AM |  by Paul Lilly

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There's no denying Nvidia has seen better days, but is the current situation enough to warrant leaving the chipset business? Back in August when the rumor first surfaced, Nvidia vehemently denied the speculation calling it "completely groundless," but apparently not everyone is convinced.

Nvidia saw its shares tumble nearly 14 percent yesterday following a negative report on the company from Pacific Crest analyst Michael McConnell. In the report, McConnell says "our checks confirm that Nvidia has decided to exit the chipset market next year," while also noting that chipsets are expected to account for 21 percent of Nvidia's revenue. McConnell also suggested Nvidia would likely pre-announce negative financial results for the third quarter ended October.

At the other end of the rumor spectrum, Mac-inites insist next generation MacBooks will come assembled with Nvidia silicon. Word on the web is that Nvidia has been showing off prototypes internally of the upcoming MacBook with Nvidia inside.

Image Credit: Nvidia

COMMENTS:
6
TAGS: 
nvidia, motherboard, chipset, rumor
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COMMENTS
avatarI agree, this is good

Submitted by Gondo on Wed, 2008-10-08 13:41

I agree, this is good news.

 

After all, it should be an open segment.  Crossfire or SLI should be available to every board, and every chipset that wants to implement the schemes.

 

A person should not be penalized because they only prefer Intel, ATI, ViA... chipsets.

 

After all, SLI rocked back with the Voodoo 2 and Glide API...  It is difficult to impossible to get the same results with todays 3D apps.

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avatarUhm...so what? Unless

Submitted by horzo on Wed, 2008-10-08 12:14

Uhm...so what? Unless you're concerned about the future of SLI (I couldn't care less myself) I don't see how it's a bad thing for Nvidia's core business that they might stop making mobo chipsets.

 

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avatarChipset Competition

Submitted by One4yu2c on Wed, 2008-10-08 12:58

If for nothing else, the competition benefits enthusiasts who right now can pick up a high performing board from either camp (Nvidia or Intel) for under $200. Nvidia chipsets were also key in helping AMD build a following back in the Barton days, as a high end nForce chipset (think Asus A7N8X Deluxe or Abit NF7-S) was ultra affordable compared to pairing a pricey Intel processor with an equally pricey Intel motherboard.

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avatarSo will this mean i can run

Submitted by mlee19 on Wed, 2008-10-08 11:18

So will this mean i can run dual ATI and Nvidia GPUs on an Intel chipset in the near future?

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avatarWhat the heck is wrong with NVIDIA!?!

Submitted by BrookV on Wed, 2008-10-08 10:25

First their QA drops the ball on a mess load of bad chips and now this? They need to chop some corporate heads! Whomever is running this company into the ground has got to go!

...Goodbye for now nvidia, I'll see you again when you get your act straight.

 meanwhile, HELLO ATI! 

 

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avatarDie the death of a thousand

Submitted by karnak on Wed, 2008-10-08 10:06

Die the death of a thousand cuts Nvidia

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