Nvidia Shares Fall After Analyst Says Company is Leaving Chipset Business

Paul Lilly

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

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