NVIDIA's Shares Tumble

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NVIDIA's Shares Tumble

Post by Kunji2008 on Thu Jul 03, 2008 3:27 pm

NVIDIA's stocks tumbled 25 percent on the back of news that some of their graphics chips are defective. The company informed investors that "significant quantities" of previous-generation graphics chips have been failing at "higher than normal rates".
Furthermore, as per their second quarter results, NVIDIA will spend about $200 million US dollars to cover warranty and repair for faulty previous generation GPU and laptop products. The company further reduced its projected revenue, blaming "price adjustments" due to competitive products (read the ATI 4850/4870).


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Re: NVIDIA's Shares Tumble

Post by Rahul on Thu Jul 03, 2008 8:11 pm

NVIDIA will be taking a $150M to $250M charge against earnings next quarter to cover the cost of repairing and replacing the affected chips, but didn't specifically announce what products were defective, just that they include GPUs and "media and communications processors." Laptop makers have apparently already been given an updated GPU driver which kicks in fans sooner to reduce "thermal stress" on the GPU, and NVIDIA says it's talking to its suppliers about being reimbursed for the faulty parts. That's great and all, but we'd really rather know which chips specifically are failing.

I guess no nVidia laptop GPU's for me

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