Nvidia posts $200 million loss, takes 69% of GPU market

By Justin Mann on May 7, 2009, 6:09 PM
Nvidia has for long enjoyed a spot as the superstar of gaming graphics, besting ATI again and again. That trend continued even past the acquisition of ATI by AMD, and didn't reverse until the latter HD Radeons were available. Since then, the fight between both graphics giants has been on much more equal footing. This has hurt Nvidia, along with many other setbacks in the past year, which all have contributed to the company posting a net loss of $201.3 million, or $0.37 per share, for the first quarter of fiscal 2010.

It isn't all bad for the company, which accompanied the financial downer with news that revenue has grown 38 percent from the previous quarter. CEO Jen-Hsun Huang mentioned they are decreasing inventory dramatically, with hardware being sold after it is manufactured nearly twice as fast as before. They also took the time to announce the milestones they reached over the previous year, such as the introduction of the Ion platform, CUDA and the upcoming Tegra 600 SoC.

Despite losing a good chunk of cash, it seems they have still managed to best AMD when it comes to desktop GPU share, claiming a 69% piece of the market up from 63% the prior quarter. This doesn't include integrated GPUs, where Intel reigns supreme. Still, is Nvidia feeling pressure from the vendors they have spurned? Is the bickering with Intel affecting their business? Nvidia is making good moves in expanding their hardware lineup, but has very stiff competition in every arena they compete in.

User Comments: 2

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Last time I had to shop for a good graphics card which was like 5 yrs ago >< I went w/ Nvidia because I wasn't really gonna be gaming, I was using MAYA extensively and it seemed that Nvidia was superior for doing 3D modeling and shit while I thought ATI was supposed to be better w/ gaming. Always had a soft spot for Nvidia but I never realized they had been wooping ATI
peas said:
Nvidia's biz model appears to be to take a loss on prices, but make up for it in volume :)Good luck Nvidia, you all had a good run. Maybe now they won't be such arrogant pinheads.
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