Graphic chips player Nvidia raised its sales outlook for the second quarter and touted the ramp up of its latest Tegra chips for smartphones, tablets and Windows 8 on the ARM architecture. But the company misjudged demand for its latest GPUs and is straining to get enough supply from TSMC, its semiconductor manufacturer. How Nvidia muddles through its supply issues will dictate its success in the ultrabook market.
The details emerged as Nvidia reported first quarter results that were hamstrung by supply constraints. Those constraints, specifically 28-nanometer chips, hurt Nvidia’s high-end graphics chip business.
The company reported first quarter earnings of $60.4 million, or 10 cents a share, on revenue of $924.9 million. Those results were in line with Wall Street estimates.
For the second quarter, Nvidia projected revenue between $990 million and $1.05 billion. Gross margins will be about 51.2 percent.
On a conference call, Nvidia executives touted its Kepler GPUs, but noted that it will still face supply issues going forward.