Slow PC market hits NVIDIA bad

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Guru3D.com ImageThe slow PC market slams NVIDIA, will see 40-50% Q4 revenue drop, talking about how the video card and motherboard manufacturer was hurt by a slow PC marketplace.

NVIDIA posted a warning today that when its fourth quarter results come in, it expects them to show a 40 to 50 percent decline in revenues from the third quarter. The graphics company cited "further weakness in end-user demand and inventory reductions by NVIDIA's channel partners in the global PC supply chain" as the reason for the drop.

40 to 50 percent is a pretty serious drop, especially given that NVIDIA's fourth quarter revenues have always risen from the third quarter, and it shows just how weak the PC market is right now. The discrete graphics market is NVIDIA's bread-and-butter, so the company is quite exposed to drops in the global appetite for PCs and notebooksand demand has definitely dropped. This is why NVIDIA has been trying to push its high-performance computing (HPC) solutions, like Tesla, up-market into supercomputers, and their mobile graphics parts down-market into netbooks via Ion.

Let's hope things will pick up in 2009, for everyone.



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