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Kepler Drives Nvidia's Success, But Supply Constraints Remain

By - Source: Tom's Hardware US | B 17 comments

Nvidia delivered a much improved quarterly result with Q2 sales of $1.04 billion and a net profit of $180.4 million, which was up 75 percent from Q1.

Nvidia attributes the business increase to solid demand for Tegra 3 and Kepler graphics cards, both of which were driving the company's gains in the quarter.

"Kepler drove a record quarter for our notebook business based on the beginning of market share gains," said vice president Rob Csongor, during the company's earnings call. "And we believe that due to the later timing of Ivy Bridge rollout this year, the lion’s share of market share gains are still to come in the third quarter."

Nvidia said that it's desktop graphics business was up as well, but 28 nm supply constraints have limited the company to address only the enthusiast market so far. CEO Jen Hsun-Huang noted that he has "no idea how much business [Nvidia] left on the table" due to the limited supply and he expects that the supply of Kepler graphics cards will remain "constrained throughout the [current] quarter." There was no further information when this situation will ease, but Huang promised to provide an update on TSMC's 28 nm manufacturing at the end of Q3.

Any delay or constrained supply of cards is hurting Nvidia's bottom line. The company said that it believes that "roughly 80 percent" of gamers have graphics cards that are below the recommended specifications of the wave of new games coming out in the second half of the year. As a result "Kepler is the perfect upgrade for the millions of PC gamers around the world," Csongor noted, which implies that Nvidia has a substantial interest in getting Kepler out.

The company also highlighted some of its successes with Tegra 3. The company has established the processor as a credible product for smartphones and enjoys the positive reviews it shares with Google about the Nexus 7 tablet. The company also noted that it is driving apps and visuals on the 17-inch screen in the latest Tesla vehicle, the Model S sedan.

 

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Top Comments
  • 17 Hide
    spartanmk2 , August 13, 2012 4:41 PM
    Still waiting for the 660's, Nvidia
  • 12 Hide
    kartu , August 13, 2012 5:07 PM
    Did re-branded cards that magically got number starting with 6 also count as keplers?
  • 10 Hide
    bustapr , August 13, 2012 5:30 PM
    amd should up their marketing strategies. hire a better person to market all their stuff. it really isnt very amazing that amd makes great competitive GPUs but barely make any profit increase, while nvidia is always growing(75% increase?!).
Other Comments
    Display all 17 comments.
  • 17 Hide
    spartanmk2 , August 13, 2012 4:41 PM
    Still waiting for the 660's, Nvidia
  • 8 Hide
    rantoc , August 13, 2012 4:51 PM
    Shame that both Nvidia and Amd struggle to get their Gpu volumes up, it only hurts consumer supply and that mean prices in the end!
  • 2 Hide
    makaveli316 , August 13, 2012 5:05 PM
    spartanmk2Still waiting for the 660's, Nvidia


    Me too. I'm about to make a new system and i'm only waiting for the 660 ti to come out.
  • 12 Hide
    kartu , August 13, 2012 5:07 PM
    Did re-branded cards that magically got number starting with 6 also count as keplers?
  • 10 Hide
    bustapr , August 13, 2012 5:30 PM
    amd should up their marketing strategies. hire a better person to market all their stuff. it really isnt very amazing that amd makes great competitive GPUs but barely make any profit increase, while nvidia is always growing(75% increase?!).
  • 4 Hide
    azraa , August 13, 2012 5:44 PM
    bustapramd should up their marketing strategies. hire a better person to market all their stuff. it really isnt very amazing that amd makes great competitive GPUs but barely make any profit increase, while nvidia is always growing(75% increase?!).


    They did replace the guy in charge of that office. There is an article here at Toms. Anyway, they still need massive ads campaigns and the uneducated masses to be informed.
  • -2 Hide
    matt_b , August 13, 2012 6:20 PM
    spartanmk2Still waiting for the 660's, Nvidia

    If there's any indication given Nvidia's track history the past couple of years (particularly this one), you may have to be patient and have trigger alerts in place for when stock pops up.

    Quote:
    The company said that it believes that "roughly 80 percent" of gamers have graphics cards that are below the recommended specifications of the wave of new games coming out in the second half of the year. As a result "Kepler is the perfect upgrade for the millions of PC gamers around the world,"

    I cannot help but laugh at this quote. Is this based on those that play the latest games, those that are content with IGPU for web-surfing, and/or the consumer using their integrated HD3000 graphics to play Farmville? Amusing nonetheless, but I could take it more credibly if it wasn't coming from the PR department of the company trying to sell this kind of product (independent study/sources???). Of course I say this, yet I am looking to replace the old HD4870 now :)  As to the games being that demanding that are being released the 2nd half of this year, perhaps he forgot that the PS3/Xbox 360 are still around. Once those are pushed aside (late next year?) , then we will probably see a good jump in hardware requirements for PC games.
  • 7 Hide
    tului , August 13, 2012 6:55 PM
    I went with AMD for this latest generation(NV 6xx & AMD 7xxx) due to the massive compute performance difference between the two. People are right, AMD should really step up it's marketing.
  • 0 Hide
    boiler1990 , August 13, 2012 7:04 PM
    rantocShame that both Nvidia and Amd struggle to get their Gpu volumes up, it only hurts consumer supply and that mean prices in the end!

    It's not necessarily their faults, since they both have their chips fabricated by TSMC, and TSMC had major issues with 28nm lithography.

    kartuDid re-branded cards that magically got number starting with 6 also count as keplers?

    Probably not, since Kepler specifically refers to the GPU architechture.
  • 1 Hide
    eddieroolz , August 13, 2012 8:08 PM
    Congratulations NVidia. The GTX 680 was a very convincing buy and I'm happy to be an owner of one.
  • 0 Hide
    jabliese , August 13, 2012 8:53 PM
    HURRY UP ALREADY
  • 2 Hide
    gilgamex , August 14, 2012 1:07 AM
    Still waitin on the Voodoo 6
  • 1 Hide
    tomfreak , August 14, 2012 1:12 AM
    I still have noidea why they choose to ignore/delay the most profitable segment 650/660. Its pretty stupid, I need 7700/7800 competitor now.
  • 0 Hide
    ojas , August 14, 2012 5:45 AM
    makaveli316Me too. I'm about to make a new system and i'm only waiting for the 660 ti to come out.

    Day after tomorrow (16th), friend. ;) 
  • 0 Hide
    deicided , August 14, 2012 7:07 AM
    Just Picked up my Gigabyte GTX670 OC edition today can't wait to get home and get it set up in my PC.
  • 0 Hide
    madooo12 , August 15, 2012 7:23 AM
    deicidedJust Picked up my Gigabyte GTX670 OC edition today can't wait to get home and get it set up in my PC.

    so where are you writing this from if you're not at home?
  • 0 Hide
    deicided , August 15, 2012 11:29 AM
    madooo12so where are you writing this from if you're not at home?


    work...