nVidia expects a rough time

nVidia has adjusted it's revenue expectations for the second quarter, ending on the 27th of July. Originally, a revenue of US $1.1 billion was expected, nVidia reports that the achieved revenue will be between US $875 and US $950 million. 

The direct cause for the adjustment is the so-called 'recall' of notebook-GPU's and notebook-chipsets. nVidia has experienced problems with the heat production of these chips and has recalled a large amount of 3D-chips and chipsets for replacement. This recall would cost approximately US $150 million. 

nVidia is also affected by strong competition of both Intel as AMD in the notebook-segment. According to rumors, the expected raise of ATI's market share plays a part as well, which will result in nVidia cutting 3D-chip prices significantly.

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