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Thursday, 29 July 2010 10:31

Nvidia lowers Q2 revenue outlook

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18 percent cut
Nvidia has officially lowered its Q2 revenue estimates from $950 to $970 million down to $800 to $820 million.

The chipmaker announced that the drop was caused by weak consumer spending that slowed down sales of its high-end GPUs. Nvidia also noted that memory costs also had an impact on sales, as well as economic turmoil in Europe and China.

It also appears that the market is shifting to low cost GPUs, which can't be good news for Nvidia, as it sill lacks competitive products in the low end market segment. Mercury Research analyst Dean McCarron also noted that Apple's shift to ATI GPUs was just part of a larger, concerning trend. Partners and consumers are shifting to ATI cards in ever increasing numbers.

Nvidia shares slipped 6.5 percent on the news, to $9.47, which really isn't too surprising considering all the bad news from the green team in recent days.
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