Nvidia reported fiscal 2010 Q2 revenues of $776.5 million, an increase of 17 percent sequentially, but still down 13 percent year-on-year.

The net loss of $105.3 million might sound bad, but it's better than the $120.9 million loss Nvidia reported a year ago. The loss was mainly caused by a net charge of $119.1 million, caused by faulty packaging in 8-series mobile chips last year. GAAP net loss for the six months ended July 26, 2009 was $306.6 million.

Nvidia expects demand to keep improving in Q3, with a revenue increase of 5 to 7 percent, and CEO Jen-Hsun Huang is confident about Nvidia's two latest businesses, Tesla GPGPU and Tegra ultra low-power computer-on-a-chip. In Q2 Nvidia shipped its first 40nm GPUs, started shipping Tegra processors for Microsoft Zunes and won several design wins for the new chip, while its ION chipset also started making inroads in the nettop/netbook market.