Nvidia gives rosy outlook but shares fall 3.17%
Nvidia Corp gave a rosy outlook for its mobile chip business, but its stock was pulled down by concerns about growing competition
San Francisco: Nvidia Corp gave a rosy outlook for its mobile chip business, but its stock was pulled down by concerns about growing competition in its core PC graphics market.
Nvidia has jumped into mobile computing this year, with its chips appearing in tablets and phones made by Samsung Electronics Co Ltd, Motorola Mobility Inc and LG Electronics Inc.
Santa Clara, California-based Nvidia grew its mobile business more than some analysts expected in the first quarter, even with stiff competition from Apple Inc's iPad 2.
But Nvidia shares fell 3.17 per cent in extended trading, erasing a gain in the normal session as investors remained concerned the company's graphics chip market is under pressure.
Rivals Advanced Micro Devices Inc and Intel Corp both launched central processors with integrated graphics this year, which might erode demand for Nvidia's low-end chips, and tablets are also affecting demand for PCs.
"The GPU [graphics processing unit] business is unlikely to ever get back to prior levels," said Auriga analyst Daniel Berenbaum.
Nvidia said tablets and phones with an upcoming quad-core mobile processor will go on sale this year.
