Nvidia profits double, stock splits

PC and PS3 graphics chipmaker takes in $172.7 million in Q2, announces three-for-two stock split.

Nvidia, one of the two primary makers of graphics cards for gaming PCs, today reported a massive surge in quarterly profits. For the three months ended July 29, the company saw net income of $172.7 million ($0.43 per share) on revenue of $935.3 million. That's way up from the $86.8 million ($0.22 per share) on revenue of $687.5 million it took in during the same period in 2006.

"Our ongoing strategy to extend the reach of the GPU is paying off," said Nvidia CEO and president Jen-Hsun Huang, stating the obvious. "There is a fast-growing universe of applications that rely on the processing capability of the GPU, from 3D design and styling tools, video- and photo-editing software, 3D maps, and video games, to the user interfaces of the Mac and Vista."

Besides its extensive line of GeForce GPUs for PCs, the company also makes the RSX graphics chip used in the PlayStation 3. The graphics chips used in the Xbox 360 and Nintendo Wii are made by Nvidia's archrival, AMD-owned ATI, which also makes the Radeon line of PC GPUs.

Nvidia is marking its success by offering a 3-for-2 stock split. As of the end of business on Monday, August 20, owners of any two shares of Nvidia stock will receive a third gratis. After the split is completed in early September, Nvidia will have around 550 million shares of common stock.

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Discussion

78 comments
NeoNavarro
NeoNavarro

I always picked Nvidia well over ATI. Too bad the RSX GPU is only made integrated for the PS3's and cannot be store bought. I wonder how the card would have played out for us PC gamers?

Rentago
Rentago

Yuck_Too, is right. I wonder if Nvidia is making them drop the production of the consoles they drop the price on.

squall316
squall316

if only ATI/AMD could make competitive chips instead of total crap....

BigMattock
BigMattock

i lerned 2 spel by reeding this threed!!!

Hitamaru-homia
Hitamaru-homia

Im suprised they profit so little... i mean there Gcards are Awesome. im using a GF series 4 MX 4000 right now i run most MMORPGS.

makemeweak
makemeweak

Nvidia is pretty good, but my next card will be an ATI - I'm very interested in what they can do with unified shaders.

valcrist09
valcrist09

na i think Sony and Nvidia is a good team, I am impressed with Nvidias latest series of graphics card they have really stepped it up a notch, and i think there RSX card is very nice considering it was based off there 7900 series which was a great series imo. all in all i dont think Nvidia will have any problems with sony. I own a 8800 GTX and my brother has ATIs best and the GTX destroys it pretty much.. I will not go back to ATI unless Nvidia screws up.

FragMonkey09
FragMonkey09

You know, Nvidia lets their emlpoyees purchase stock (at reduced prices). I'm hoping to work for them one day.

railz38539
railz38539

I'm pretty sure Nvidia is pretty happy with sony right now. They're not gonna have any problems like they did with MS any time soon.

The_Weekend
The_Weekend

I'm happy with my old graphics card .... long lasting nvidia!

Yuck_Too
Yuck_Too

I wonder if Nvidia and Sony will get into the same legal nonsense that Nvidia and MS did with the original Xbox. For those that don't remember MS wanted to drop the price of the original Xbox but Nvidia did not want to share in that price cut, it all went from bad to worse and the end result is they went their separate ways. It's actually a bit worse in that Nvidia then required MS to write the emulators for backwards compatibility because they would not license their product to be used in the 360. Everyone blamed MS for going with software emulation but the fact is Nvidia left them no choice. And now we see some more of that same attitude...Nvidia making money while Sony takes the hit on the PS3.

Pinkyimp
Pinkyimp

Next Gen is a buzzword. An annoying one. yep when it comes to consoles.... and G4tv but anyway it did take too long for the cards and not only that but they were disappointments as well, they ran hot, too to much power and were expensive at the time the 8800GTS 320 was cheaper and it also is taking AMD forever to release there Phenom processors so right now im going Intel/nVIDIA!

Generic_Dude
Generic_Dude

Some folks just made a whole helluva lot of money.

SaitouZero
SaitouZero

ATi just took too long to release it's DX10 cards and nVidia took advanatage of this by selling tons of 8000 series to people who were sick of waiting like myself. Also the 8800 GTS 320MB is probably the best video card for the money EVER.

diablobasher
diablobasher

Yeah, the GPU's in Wii and 360 are very different. Just because they are made by the same company bears no relevance. ATI has card ranging from dx7 up to dx10, just like nVidia does, neither one is 'inferior' just different. And the only reason nVidia is seeing such a massive surge in sales right now is because ATI's dx10 cards aren't out yet (or if they are, have not been very long) Not that i dislike either nVidia or ATI. I'm in the middle ground at the moment, because i've had nothing but trouble from ATI cards, but an nVidia card blew up my PC last summer...

diablobasher
diablobasher

Next Gen is a buzzword. An annoying one.

majin_vegeta300
majin_vegeta300

no no no jacob....just because ATI makes gpu's for the wii and 360, dosen't mean they are the same one

gnrlcryingwolf
gnrlcryingwolf

[This message was deleted at the request of a moderator or administrator]

everson_rm
everson_rm

Well, Jacob, youre almost right, but the 360 VGA is at least 3times faster than the one in Wii...

imprezawrx500
imprezawrx500

what people don't relise is amd bought ati for intergrated graphics to rival intel, not for highend graphics. if you don't care about the fastest card then ati still has great offerings just nvidia is the leader right now

jacob-goodlich
jacob-goodlich

wow, the 360 s card is like the one in the wii...how embarressing, ps3 is the real next gen!

ppau08223
ppau08223

i honestly cant wait to see their second generation of unified shader cards. if their first attempt was so good them who knows how good the second will be??

DADA_007
DADA_007

Nvidia Graphics card is so expansive thats why i'll buy ps3 inshallah

gamer082009
gamer082009

For some reason Nvidia cards seem to be more worthy, although I currently have an Ati in my PC..I feel Nvidia is where it's at. My next card will surely be some type of Nvidia DX 10 card.

anamnawshad
anamnawshad

ATi 2900 is weak-sauce compared to 8800.....

Jacob_Wedin
Jacob_Wedin

"As of the end of business on Monday, August 20, owners of any two shares of Nvidia stock will receive a third gratis." I'd say Tor Thorsen is tired and possibly swedish or norwegian.

smbius
smbius

I remember buying 3dfx cards back in the day and when Nvidia came out with their TNT card I was skeptical until I bought one and tried it. Since then, I have never bought other brands. Nvidia all the way.

hrah
hrah

I always liked ATI cards but this generation is NVIDIA all the way baby !!!.

oovi3tboioo
oovi3tboioo

From what I remember ATI wasn't doing well before AMD bought them. That why ATI agree to be bought by AMD.

rdo
rdo

they should have held off. i think ati is going to pull far ahead when the dx10 games start rolling out.

ketsuatama
ketsuatama

Always been happy with Nvidia products; keep up the good work and give the consumers what they want at a reasonable price.

DontEatCream
DontEatCream

I am happy to see NVidia doing so well, but I really want AMD/ATi to get on the rebound. After all, more competition between the two companies results in much better products and prices for the consumer.

Tyler135791
Tyler135791

i think ever since amd bought ati, ati has lost a lot of momentum. As an ati fan, it's nice to see nvidia doing well, but i would have liked to have seen if ati would have done as well or better if they were not bought by amd

comthitnuong
comthitnuong

Good for them. Nvidia has been doing well.

lettuceman44
lettuceman44

@azizrulez- what are you talking about? ATI did a superb job on the ATI 2900xt. Did you not see the recent benchmarks? It is not rivaling the GTX,and it is also $100 cheaper. It is also predicted that the 2900xt will do better then the GTX,and might even match the Ultra in dx10, for the reason that R600 was built buy how dx10 works, while G80 did not follow that as much, like the AA through shaders, which is what is killing the 2900xt in dx9 games, and making the G80 excel since it doesn't have that(though drivers are greatly improving AA for ATI, and the next driver update looks to be big). But in dx10, AA is done through shaders, just how the 2900xt does it. The only reason it got bad publicity is the media freaked out, and judged the card to early. Now, that is starting to change, and on TomsHardware, it is even the recommended one now, and starting to show what it can do. Makhdoom82 8800 is really paying Nvidia ... hey Ati what do you have to match that !!! -look above. foxracing1313 ATi hasn't been doing anything in the laptop/PC sector since last year... This wasn't exactly hard for nvidia to do... -ha, they have been doing plenty. They have lots of things in the works, one thing of interest is a multi core gpu,(forgot name, I think R750 or something) -wardrobe- gonna get me a 9800 when they are out -it has been said that the 9800 is a filler in the gap between 8600 and 8800. Nothing is for sure right now

azizrulez
azizrulez

not too shocking to me actually,ATI really dropped the ball on the DX 10 cards

xophaser
xophaser

I guess I have owned quite a few nvidia cards, once I think about it. TNT, Geforce256, GeforceGo4, RSX and 8800gts 640.

foxracing1313
foxracing1313

ATi hasn't been doing anything in the laptop/PC sector since last year... This wasn't exactly hard for nvidia to do...

Valen_Ca
Valen_Ca

It's not like this was hard to do, ATI hasn't had anything to compete with them on the high end for almost a year now.

miningguy
miningguy

nVidia way to go i also love your 8800 Utra

shadeboy101
shadeboy101

8800gts640 overclocked myself. tnx nV

WNxUSA
WNxUSA

Niceness! My 6600 GT still kicks some of todays games :) Long live nVidia! Good to see them doing so well :) After being only a nVidia fan, this is definately a plus sign for the company.