Sat, May 12, 2012 - Page 12 News List

Nvidia Q2 sales to exceed estimates on higher demand

Bloomberg

A man wears 3D glasses to play a game on the VRX simulator powered by Nvidia at the International Consumer Electronics Show in Las Vegas, Nevada, on Jan. 11.

Photo: AFP

Nvidia Corp forecast that its second-quarter sales would exceed analysts’ estimates, bolstered by demand for its new graphics chips and mobile-phone processors.

Revenue for the period ending July would reach between US$990 million and US$1.05 billion, the Santa Clara, California-based company said in a statement yesterday.

Analysts had estimated US$976.3 million on average, according to predictions compiled by Bloomberg.

Sales of a new product for desktops were stronger than anticipated, exceeding supply, while its notebook business had record revenues in the first quarter, Nvidia said.

Shortages from supplier Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s top contract chipmaker, are still holding back sales of the company’s most profitable products. Like Qualcomm Inc and other chipmakers, Nvidia subcontracts its production to foundries in Asia.

Last month, TSMC announced that it would increase capital spending for this year to a record US$8.5 billion after customers complained about not receiving enough 28-nanometer chips for mobile devices, such as smartphones.

Nvidia gets most of its revenue from its GeForce semiconductors, which are used to create high-end graphics cards in desktop and notebook computers.

The company’s share price rose 7.1 percent to US$13.30 at 7:42am in New York before the market opened.

The shares had declined 10 percent this year through Thursday compared with a 7.5 percent gain on the Philadelphia Semiconductor Index.

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