Nvidia says revenues are rising sharply
Taipei (Taiwan) - Helping to stave off the after-effects of negative financial news that hurt CPU manufacturers AMD and Intel yesterday, and carried over into the graphics processor sector, Nvidia vice president for corporate marketing Rob Csongor told Reuters at Computex this morning that revenues for his company were rising sharply, and reminded reporters of the upward revenue trend lines set by last month’s surprisingly positive numbers.
Last month, , Nvidia closed out its fiscal year ending in January with an astounding net income jump of more than 300% over the previous year, and income per share of $1.65 versus only 57¢ for fiscal 2005. Granted, ’05 was not a stellar year for Nvidia, but the rebound had sent its stock trading value to four-year highs, not seen since the Great Bubble Burst of ’01.
But confusing news had sent Nvidia stock value south in the past few weeks : First, there was the silliness about rival ATI not merging with AMD (as if that could have happened in the first place), which some investors saw as a negative for Nvidia (there wouldn’t be an opportunity for Intel to follow suit). Next came yesterday’s downgrading of Intel and AMD stocks, which some interpreted as indicative of a coming summer price war in the CPU sector, and others as bad news for the former would-be merger partners.
That news carried into the graphics sector, since news of a lull in semiconductor industry growth was seen as bad for all computer parts manufacturers in general, even though the SIA - which was the source of the bad news - took some of that bad news back yesterday.
Nvidia’s Csongor said today that the same trend line which enabled his company to post revenue of $2.375 billion for fiscal 2006, coupled with a not-so-bad outlook for semiconductors this year, could catapult Nvidia over the $3 billion mark for fiscal 2007. That news sent Nvidia’s tumbling stock value on a nice rebound, up a third of a point by midday at $21.75. Stock value has a way to go still before catching up to its 52-week high of $31.88, reached just last 8 May.