Nvidia Cuts Sales Forecast, Blaming Hard-Drive Shortage, Tegra 2 Decline
Chipmaker Nvidia warned on Tuesday that its current quarter’s sales would fall short of expectations.
The company, whose fourth quarter ends Jan. 29, said it now expects quarterly revenue of about $950 million, as compared with its original expectation of approximately $1.066 billion.
Nvidia said the shortfall was caused in part by the PC-market impact from a global hard-drive shortage brought on by flooding in Thailand. As a result, fewer systems were shipped, and some PC makers opted to scale back on graphics to account for their higher hard-drive costs.
Nvidia also said that its Tegra 2 mobile chip business declined more rapidly than it had expected. The company is currently ramping production for the successor to that chip — the quad-core Tegra 3.