NVIDIA graphic processing units (GPUs) might experience weaker sales during the second quarter of the fiscal year, according to UBS analyst Uche Orji. The analyst also believes that the market for application processors, an example of which is NVIDIA’s Tegra line of system-on-chips, has serious competitors that NVIDIA has to contend with.
Orji based his analysis on the Q2 fiscal reports revealed last week by chipmaker Advanced Micro Devices (AMD). Orji’s conclusions about NVIDIA’s market performance, though, seems to come not from GPU-based competition per se but from a generally weak market. Orji observed the 11% decline of AMD’s GPU sales from quarter-to-quarter, which, in Orji’s thinking translates to about 2% quarter-to-quarter decline in sales of NVIDIA GPUs.
The analyst sees a decrease in NVIDIA GPU sales for Q2–that is, US$553 million, in comparison to last year’s US$564 million. NVIDIA’s Tegra processors, the Tegra 3 in particular, may even find a tougher year in 2013, with Orji’s modelling US$417 million for the fiscal year. Orji explains the possible contributory factors to NVIDIA’s lower sales figures:
By the looks of it, we’ll probably not be seeing a Tegra 3 and Ice Cream Sandwich (ICS) tandem before the year ends. Are you okay with a TI and ICS partnership?
(Source: Tech Trader Daily)