nVidia reports a 68% jump in profits

[mpjesse]

http://www.tgdaily.com/2007/02/14/nvidia_q4_2007/

Santa Clara (CA) - Nvidia reported solid financial results for the fiscal fourth quarter 2007 ended on January 28. Fueled by strong sales in the desktop and notebook segment, revenues surged 39%, profits climbed by 68%.

Q4 sales came in at $878.9 million, compared to $633.6 million in the year-ago period. Net earnings were up from $97.4 million to $163.5 million in the same time frame. For the year, the company reported revenues of $3.07 billion, up 29% from $2.38 billion the prior year. Profits for the year increased by 49% from $301.2 million to $448.8 million.

I'm sure a lot of you already saw this. The thing to note here is that nVidia's revenues were over twice what ATI's were in the same (general) period. ATI's revenue in Q4 '06 was $398 million; nVidia's $878 million. (http://seekingalpha.com/article/24929)

nVidia is looking good these days.

Anyone want to share any thoughts? A lot of focus lately has been on AMD vs Intel. I think a lot of people are forgetting about AMD vs nVidia.

 

[djgandy]

You are right. I've certainly not forgotten about the graphics war though.

I see nvidia as the Intel of the graphics market anyway. They can get away with making lower performance products and still keep a good market share because they are the 'favoured' brand as to speak.

AMD are behind in graphics, although this is expected since they did only recently gained control.
They will need to close that gap though. If they can't close in on nvidia their chances of closing in on Intel are hopeless.

 

[Blacken]

8O Hell of a mor-al booster for nV I bet. Get er' dun and keep em' comming

 

[Slobogob]

While it´s not really a monopoly on the GPU market it´s getting quite close to it. First they launch their G80 way before AMD can get theirs to market. Now they have launched their 8800 GTS 320Mbyte and once AMD gets their GPU out they start churning out a whole bag of new G80 Family members. Even if AMD can get top the G80s performance, Nvidia already has moved on to a something newer. If the nv keeps pushing it like that, i really doubt amd can keep up.

 

[capnbfg]

The only company in the graphics business that you can really call a monopoly right now is Intel (40% market share). If you ignore Intel and compare only ATi and nvidia, then you find ATi ahead by 1% (23% vs 22% share). Granted that ATi has been losing ground and will probably be outrun by nvidia this year (if they haven't already), but it still is not what I would call a monopoly.

Sources for the above figures:
http://www.reghardware.co.uk/2006/12/06/q3_06_graphics_market/
http://www.techspot.com/news/23798-ATI's-market-share-is-falling.html

 

[TheGreatGrapeApe]

I'm sure a lot of you already saw this. The thing to note here is that nVidia's revenues were over twice what ATI's were in the same (general) period. ATI's revenue in Q4 '06 was $398 million; nVidia's $878 million. (http://seekingalpha.com/article/24929)

Yeah, but the thing to remember is that it's because of AMD that those numbers are what they are. ATi's Fiscal Q1 '07 (that' the period you're quoting above ending Dec31, Q4 was up to Sept 1) is about half of what they had in Q3-06 [period up to June 1 & Last time it was ATi] which was 652.3 Million. With the lost intel sales going to nV and AMD not having their own MoBos and integrated solutions up to speed all the lost sales went to nV with nothing in return. By this time next year the tables will likely have turned back close to what they once were, with the threat of the impending intel discrete graphics solution on the horizon too.

A lot of focus lately has been on AMD vs Intel. I think a lot of people are forgetting about AMD vs nVidia.

That's because the long-term fight is AMD vs Intel. nV is simply winning the first 200M of a 1600M (metric mile) race. The most interesting battle hasn't even started yet.

Just wait until AMD makes their own chipset and offers OEMs end to end products, and intel and SIS and S3 and even maybe Ti enter the entry and mainstream discrete graphics market, that's when things will get really interesting. Before it was A vs B in two different markets, now it's everyone heading towards the same goal.

 

[raven_87]

The 8800GTX is in this case the perfect example of a flagship.
Its sales are quite abysmal compared to other GPU's, but when you have the
current fastest high end GPU, it seems to boost the sales of your lower
end components. Another reason NV is putting up good numbers.
Thats all gonna start changing around March/April though.

 

[TheGreatGrapeApe]

Any quick linkage you can offer on this?

Yes, but at home. Not here from work.

 

[TheGreatGrapeApe]

You likely already know about intel's discrete plans, but here's a recent articles talking about taking it even further and in new directions (hence the future is very different);
http://www.theinquirer.net/default.aspx?article=37548
http://www.anandtech.com/cpuchipsets/showdoc.aspx?i=2925


S3/VIA;

Graphics
http://www.hexus.net/content/item.php?item=6155
http://www.theinquirer.net/default.aspx?article=35932

roadmaps;
http://img257.imageshack.us/img257/9407/2006041900442920653yr3.jpg
http://img257.imageshack.us/img257/35/6d1eqn8m1897nf2lm2.jpg


Integrated dual solution product;
http://www.linuxdevices.com/news/NS2154184680.html

SIS;
http://www.theinquirer.net/default.aspx?article=32383
http://www.hkepc.com/bbs/itnews.php?tid=738009&starttime=0&endtime=0
http://wwww.vr-zone.com/?i=4594