Nvidia back to making a profit.

[jennyh]

http://www.marketwatch.com/story/nvidia-posts-higher-quarterly-profit-2009-11-05

Even with 2nd-rate graphics cards and an ever decreasing market share in gpu's, Nvidia are still making money. You can relax for now, Nvidia aren't about to go belly-up anytime soon.

 

[shadow187]

What goes up must come down...

Sometime or another, anyways.

 

[jennyh]

Nvidia are actually doing ok because Tegra is pretty decent. This is probably what made them abandon the desktop graphics market - there is more money to be made elsewhere eventually and they have no competition in other markets yet.

 

[megamanx00]

Hah, that's probably because they aren't spending money making costly G200 chips anymore but rather selling the ones they have. I'm sure they would love to be spending money making G300 chips, but TSMC ain't exactly helping with that right now ^_^.

 

[JAYDEEJOHN]

Its the next qtr that may show some different numbers

 

[KidHorn]

Their numbers look good. They're in way better financial shape than AMD.

 

[jennyh]

Actually no, the margins are about the same and AMD would have made a profit in Q3 except for paying global foundries R&D.

Nvidia wishes it was in the position to pay fab R&D.

 

[JAYDEEJOHN]

Did your link minclude the 25 million from Insurance?
Thats included in the total amount, which was really 82 million I believe, may be wrong

 

[gamerk316]

Don't forget people, NVIDIA can afford to be unprofitable, AMD can't. Say what you will, AMD needs to turn a profit NOW. They have superiority in the GPU market, and are very competitive in the CPU market. They won't be able to hold their increased share unless they start to turn a profit while they have a chance.

We'll see. Q1 results will be quite interesting...

 

[JAYDEEJOHN]

Im thinking AMD will be fine, especially with this going on
http://online.wsj.com/public/resources/documents/Intelcomplaint1104.pdf
But yea, youre right, nVidia can afford to take a few hits

 

[mizzl]

Even though i like ATI more, i really hope NVidia doesn't go belly-up.

 

[KidHorn]

Even though i like ATI more, i really hope NVidia doesn't go belly-up.

NVidia has basically no debt, so there's no one they would need bankruptcy protection from. Plus they have a lot of cash.

AMD, on the other hand, has a ton of debt.

 

[KidHorn]

Actually no, the margins are about the same and AMD would have made a profit in Q3 except for paying global foundries R&D.

Nvidia wishes it was in the position to pay fab R&D.

Both companies have to invest a lot in R&D. It's the nature of high tech product development.

Your statement makes as much sense as saying MCDonalds would have made a lot more profit if they didn't have to pay for beef.

 

[JAYDEEJOHN]

And as soon as GF takes off, those profits too will be AMDs, as well as a cheaper overall cost on ATI cards, eliminating TSMC, where theres no shared profit

 

[KidHorn]

I think what she was getting at is nvidia wishes it could have it's own fabs(unlikely), not R&D into gpu but the tech to build them.

I thought AMD sold off its fab business.

 

[jennyh]

You thought wrong then. AMD controls 34% of GlobalFoundries, soon to be the worlds second largest foundry and possibly the first to 28 and 22nm.

AMD actually has more fabs now that it ever did since the Chartered buyout by ATIC. As stranger alluded to, Nvidia don't have any fabs of their own to pay R&D towards, and probably never will. In fact, Nvidia will quite likely end up a customer of GlobalFoundries within 1 year.

http://en.wikipedia.org/wiki/Global_foundries

 

[cjl]

You thought wrong then. AMD controls 34% of GlobalFoundries, soon to be the worlds second largest foundry and possibly the first to 28 and 22nm.

AMD actually has more fabs now that it ever did since the Chartered buyout by ATIC. As stranger alluded to, Nvidia don't have any fabs of their own to pay R&D towards, and probably never will. In fact, Nvidia will quite likely end up a customer of GlobalFoundries within 1 year.

http://en.wikipedia.org/wiki/Global_foundries

It's not likely that GlobalFoundries will beat (or even be that close to beating) Intel to 22nm. Intel has demonstrated far more extensive 22nm capability at this point. On the other hand, they may well win to 28nm.

 

[JAYDEEJOHN]

Problem with all this speculation is, the game as we know it, for sure, has changed.
No longer is GF constrained in monies like before, so, actually, they should do better to all next process' unlike before, when AMD had little monies for commitment to this (see my link earlier)

 

[JAYDEEJOHN]

Being responsible for 1 third of investments in R&D in GF, investing the same as they used to, GF can now have 3 times as much monies towards investments

 

[jennyh]

In 2012 GF And Intel will be almost identical in fab output.

AMD will sell cpu's at break-even point (or even a small loss) simply to diminish intels business. They did it with Nvidia, they will do it intel too. It will be a great time for consumers as well, and a lot of people will understand what a strong AMD really means for the first time.

 

[cjl]

In 2012 GF And Intel will be almost identical in fab output.

AMD will sell cpu's at break-even point (or even a small loss) simply to diminish intels business. They did it with Nvidia, they will do it intel too. It will be a great time for consumers as well, and a lot of people will understand what a strong AMD really means for the first time.

I sincerely hope you are correct. However, GlobalFoundries has not shown a working 22nm full wafer yet, while Intel has.

 

[JAYDEEJOHN]

But, since dev started before the changeover, GF too now can put the peddle to the floor, since it has more monies to do so

 

[cjl]

But, since dev started before the changeover, GF too now can put the peddle to the floor, since it has more monies to do so

More money than they used to have, absolutely. More money than Intel? Not even close.

 

[JAYDEEJOHN]

Depends on how thats applied. ATIC is sooooo much ,ore than Intel, not even close.
These things take time, but the ball wont be dropped here, thats for sure