NVIDIA made their quarterly conference call on May 12th which consisted of financial results up to May 1st and questions from financial analysts and investors. NVIDIA chief executive officer Jen-Hsun Huang projected that future revenue from the GPU market would be “flattish”, revenue from the professional market would be “flattish”, and revenue from the consumer market would be “uppish”. Huang did mention that he believes that the GPU market will grow in the future as GPUs become ever more prevalent.
How’s the green giant doing this quarter? Read on for details.
For the professional market, NVIDIA discussed their intention to continue providing proof-of-concept applications to show the benefit of GPU acceleration which they hope will spur development of GPU accelerated code. Huang repetitively mentioned that the professional market desires abilities like simultaneous simulation and visualization and that a 10% code-rewrite would increase performance 500-1000%, but current uptake is not as fast as they would like. NVIDIA also hinted that GPUs will be pushed in the server space in the upcoming future but did not clarify on what that could be. NVIDIA could simply be stating that Tesla will continue to be a focus for them; they also could be hinting towards applications similar to what we have seen in recent open sourced projects.
For consumers, Huang made note of their presence in the Android market with their support of Honeycomb 3.1 and the upcoming Icecream Sandwich. Questions were posed about the lackluster sales of Tegra tablets but Huang responded stating that the first generation of tablets were deceptively undesirable due to cost of 3G service. He went on to say that the second wave of tablets will be cheaper and more available in retail stores with Wi-Fi only models more accessible to consumers.
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The bulk of the conference call was centered on nVidia’s purchase of Icera though not a lot of details were released being that the purchase is yet to be finalized. The main points of note is that as of yet, while NVIDIA could integrate Icera’s modems onto their Tegra mobile processors, they have no intention of doing so. They also stated they currently have no intention of jumping into the other mobile chip markets such as GPS and near-field communications due to the lesser significance and greater number of competitors.
I think the new owners like the color on the logo.
The last point of note from the conference call was that they expect that Project Denver, NVIDIA’s ARM-based processor, to be about 2 generations away from accessible. They noted that they cannot comment for Microsoft but they do reiterate their support for Windows 8 and its introduction of the ARM architecture. The general theme throughout the call was that NVIDIA was confident in their position as a player in the industry. If each of their projects works out as they plan, it could be a very well justified attitude.