Nvidia ups its game, but forecast is weak

Nvidia ups its game, but forecast is weak

by Martha DeGrasse

Nvidia (NVDA), known for high-performance graphics processors that enhance the gaming experience, said fourth-quarter net income rose 50% year-on-year to $174 million. Revenue was $1.1 billion, and analysts were expecting another billion-dollar-plus quarter going forward, but Nvidia said that was too optimistic. Apparently still smarting from weak PC sales, the chipmaker now says revenue will be closer to $940 million this quarter, plus or minus 2 percent.

As the PC market stagnates, Nvidia is not sitting still. The company has made big inroads into mobile devices, particularly tablets. At CES 2013, it unveiled its Tegra 4 processor, calling it the world’s fastest chip.

“It’s the world’s first quad core A15, so at the high end lots of performance,” said Tegra 4 product manager Doug MacMillan. “I think the significant thing in the chip is the graphic performance. We’ve gone from a 12-core GPU to a 72-core GPU … it allows us to do amazing things in the graphics space.”

Watch the full interview:

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