SAN JOSE, Calif. — Nvidia Corp. is moving into unsteady waters. The company is readying a lower-margin integrated chipset for PCs, while it has also delayed a graphics chip for use in Apple Computer Inc.'s next-generation video iPod line, according to an analyst.
''We have talked about Nvidia replacing Broadcom for the next-generation Apple video iPod socket in July 2006,'' said Satya Chillara, an analyst with Pacific Growth Equities LLC. ''At this point, our checks indicate the mobile graphics processor tape out has been pushed to Q2/Q3 of CY:07, from Q1 of CY:07. We think this could cause some instability to Nvidia's revenue momentum for the first half of CY:07.''
What impact this will have on the next-generation video iPod is unclear. Consistent with previous speculation, Nvidia (Santa Clara, Calif.) has seen its graphics processor designed into next-generation video iPods, which are due out next year. In the new video iPod, the application processor will be supplied by South Korea's Samsung Electronics Co. Ltd.
Besides the iPod, Nvidia faces another hurdle. ''Based on our checks, we believe that Nvidia now has chipsets to attack the low end integrated Intel-based chipsets,'' Chillara said in a report.
''There are three reasons why we believe it might be premature for Nvidia to attack the low-end Intel-based chipsets,'' he said. ''First, we believe Nvidia cost structure for these low end IC's is not as efficient as their AMD-based chipsets. Moreover, we estimate that Nvidia's high cost structure could persist for the next two quarters. Second, in our opinion, the gross margins in this space will be challenging and pose a risk to performance.''
The low-end, integrated Intel-based chipsets produced by ATI Technologies had gross margins of around 15 percent, he said.
It's been a wild ride for Nvidia in recent times. Recently, the company pushed the boundaries of PC graphics at both ends of the spectrum by launching a novel processor architecture and buying PortalPlayer Inc. for $357 million.
On Wednesday (Nov. 29) Nvidia said it is restating six years of earnings as a result of an internal investigation into stock-options backdating.
RSS
Digital
10 emerging technologies to watch:
EE Times has compiled a list of emerging technologies that we think will be worth watching out for in 2010. Biofeedback or thought-control of electronics are among the contenders.
Hot applications in 2010:
We've compiled a list of 10 technology applications you should watch for in 2010, ranging from e-book readers to 3-D TVs. We examine the features that make these apps so compelling as well unresolved issues.
Top 25 predictions for semis in 2010:
2010 is just beginning to unfold in the electronics industry. Looking into our crystal ball, we have released our own chip forecasts--and other predictions--for 2010.
Seven things to fix in 2010:
The editors of EE Times came up with their own informal list of things we hope engineers fix in 2010, spanning everything from nano-lithography to space travel. What do you want to see get done this year?
'09 moves that are shaping the future:
This was a brutal year, but the industry gets a nod for showing grace under fire. Here's our Top 10 guide to the coming year, illustrating what to expect in 2010.
10 CEOs out in 2009:
It's been a tough year for the global electronics industry and CEOs. We survey the dismissal of 10 industry CEOs during the first three quarters of 2009 and what's ahead for the rest of the year.
Notable women in microelectronics:
There is no better time than a global economic recession to examine the keys to successful corporate governance. So, EE Times has compiled an international list that celebrates women who are business and technology leaders in semis.
EE Times updates Silicon 60:
Seventeen companies have been added to the lastest version of our Silicon 60 list of emerging startups. Forty-three companies survived as emerging companies that are still worth watching.
RSS| 
Digital| 
Mobile
