Nvidia Takes $119.1 M Charge for Faulty GPUs

While the cutting latest Nvidia GPUs appear to be mostly free from manufacturing error, the faulty GPU continues to plague both the company and owners of the chip.

Disclosed in its quarterly filings, Nvidia revealed a charge that cost the company $119.1 million over the last four months to cover warranty and replacement costs related to the faulty chips due to weak packaging materials, according to Network World.

The $119.1 million charge itself brought company's bottom line down, as the company recorded a quarterly net loss of $105.3 million. This compares to a net loss of $120.9 million reported in the second quarter of 2008.

Nvidia CEO Jen-Hsun Huang called the charge just a small distraction, and that he sees signs of a recovery of the company's business.

"Nvidia's business is recovering. Product demand is improving, and our strategic investments are leading to new growth," Huang said.

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  • Pei-chen
    I can't wait to see Nvidia and ATI's DX11 cards. GTX200 and HD4000 series are getting boring.
    21
  • cabose369
    lol @ the pic of Nvidia GeFail!!!
    14
  • Other Comments
  • NewJohnny
    Thank god this is finally fading. I ended up throwing my hp laptop in the trash because of it. HP's warranty policy is to replace the motherboard with the same faulty part.
    4
  • Pei-chen
    I can't wait to see Nvidia and ATI's DX11 cards. GTX200 and HD4000 series are getting boring.
    21
  • Anonymous
    So how did they define a 'loss'?
    A loss on the profit they are making?
    I think it's hardly possible for a company to keep on existing if they would actually sell their products with loss.
    1