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NVIDIA: GPU demand more robust than foreseen

Posted on Friday, November 06 2009 @ 17:24:30 CET by

NVIDIA CEO Jen-Hsun Huang told investors in yesterday's earnings conference call that his company had underestimate demand for GPUs last quarter. Huang claimed the company was unable to fulfill several million units because demand was more robust than anyone could have foreseen.
Huang said Nvidia underestimated demand for its graphics chips, and as a result was supply-constrained for the entire quarter. "Demand has been more robust than anyone could have foreseen," Huang said.

"I think we did lose market share," Huang added, later specifying that it was probably 2 to 3 percentage points, or between $50 million and $100 million. "We came out of the quarter not being able to fulfill several million units."

Nvidia also expects to be supply-constrained for the current quarter, Huang added. "We're going to fight really really hard to make up as much as we can, but demand is very strong out there right now." Huang said he saw no evidence of "double-ordering," however, where a customer would place two orders in a period of tight supply in the hopes of getting one fulfilled.



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