NVIDIA boss sees better revenue ahead than what street expects
Amid growth in graphics and mobile processor operations - NVIDIA expects the company’s mobile chip business to grow in this quarter, according to the Chief Executive of NVIDIA Corporation Jen-Hsun Huang. Note that this is despite providing cautious guidance last month. During an investor conference he also said that the company should report revenue of $4.7 billion to $5 billion in fiscal 2013, better than the $4.45 billion expected by analysts.
The Santa Clara, California-based company, known for graphics chips used to run video games and other visually intensive applications, has been transforming itself to focus on providing chips for Smartphones and tablet computers. The Tegra applications processors that have already been taken by a few companies, including Samsung Electronics Company and Motorola Mobility Holdings which can also be counted as one of the factors reducing the sales of the Personal Computers. But he also added that there are also some worries about Tegra’s results, as the mobile growth will be flat during the third quarter.
NVIDIA is still too new to the mobile chip market to be able to provide very detailed forecasts. He said that their conservatism was considered as absence of growth by many so they are starting to grow now. But they won’t be able to forecast everything as they are not the only one in the market to be conservative and cannot control the customers and their competitors’.
Many tablet-computer makers, including Apple Inc. (AAPL) and Samsung, have been embroiled in litigation, suing each other for patent infringement.
Huang said he initially was cautious with his guidance on concerns about the effect the litigation and other factors would have on sales of tablet computers and Smartphones. But he said patent litigation is "just life." He added that the first devices using NVIDIA's quad-core mobile chip should be available in the third or fourth quarter, just in time for the holiday season which is slightly later than the company originally forecast.
For mentioning its growth in the future Huang added NVIDIA will sample chips next year that integrates its Tegra mobile processor with wireless baseband technology from its recent Icera acquisition which will mainly address the mainstream mobile market, where cost is a major factor.