Nvidia Corp., a graphic chipmaker, reported a current-quarter earnings forecast that was below analysts' average estimates. Nvidia said the company continued to struggle due to the increase in competition in a currently slowing personal computer market.
The chipmaker projected a current-revenue of US$1.05 billion, plus or minus 2%.According to Thomson Reuters I/B/E/S, the average estimate of analysts was US$1.09 billion.
Majority of the sales of Nvidia came from PCs but the company recently entered the smartphone chips' market. It invested on its Tegra mobile processor enterprise since the company's graphics expertise could lead to the creation of high-performance processors for smartphones. However, analysts noted that Nvidia's Tegra unit would fail to meet the company's expectations since the manufacturers of smartphones and tablets were expected to choose Qualcomm Inc's more sophisticated chips.
During the second quarter, Nvidia's revenue dropped by 6.4% to US$977.2 million. Its income slumped to US$96.4 million or 16 cents for each share from US$119 million or 19 cents for every share in 2012.
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