Just a few weeks ago, Nvidia’s first Fermi cards – Geforce GTX 470 and GTX 480 released to a mixed reception and wide unavailability. Rumours suggested that GF100 had yields of 20-30%, and less than 10,000 units had been shipped. These rumours were backed by facts for most of April. However, earlier this month, Nvidia turned things around, with the GTX 400 cards returning with wide availability.

Now, Nvidia CEO Jen-Hsun Huang is painting a bright future for Nvidia: “With our new Fermi-class GPUs in full production, Nvidia’s key profit drivers are fully engaged. We shipped a few hundred thousand Fermi processors into strong consumer demand. Our Quadro business for workstations grew strongly, fueled by pent up demand from enterprise customers and new growth markets like video editing. And we had record revenue from Tesla processors for high-end servers”.

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Just a few weeks ago, Nvidia’s first Fermi cards – Geforce GTX 470 and
GTX 480 released to a mixed reception and wide unavailability. Rumours
suggested that GF100 had yields of 20-30%, and less than 10,000 units
had been shipped. These rumours were backed by facts for most of April.
However, earlier this month, Nvidia turned things around, with the GTX
400 cards returning with wide availability.

Now, Nvidia CEO Jen-Hsun Huang is painting a bright future for Nvidia:
“With our new Fermi-class GPUs in full production, Nvidia’s key profit
drivers are fully engaged. We shipped a few hundred thousand Fermi
processors into strong consumer demand. Our Quadro business for
workstations grew strongly, fueled by pent up demand from enterprise
customers and new growth markets like video editing. And we had record
revenue from Tesla processors for high-end servers”.

Despite the off-season and virtually no products above the entry level in the desktop GPU market, Nvidia reported slightly improved financials over the last quarter with a net income of $137 million.

ATI still hold a price/performance/watt leadership in the desktop GPU segment, but Nvidia’s Quadro and Tesla product lines have been performing well. Adobe’s CS5 has taken the media industry by storm – especially video editing with Premiere Pro CS5. A big reason is Nvidia’s CUDA, which has made the process dramatically faster. Currently, only a few Quadro GPUs and the EOL GTX 285 is supported, so the Quadro cards have been selling well, as iterated by Mr. Huang, in the “new growth markets like video editing”. It is clear that Nvidia’s positive results are largely due to Quadro and Tesla than Geforce. However, Adobe plans to support GPU acceleration for ATI’s Radeon HD 5000 series as well as GTX 400 series cards soon.

While the GTX 400 series may have performed far below expectations, it is clear than Nvidia is showing no signs of panic, and is continuing to move forward. From a technology point of view, Nvidia have significant catching-up to do to ATI, who are selling products that are far cheaper to manufacture in the same segment as Nvidia’s flagship. Also, with ATI’s Southern Islands upcoming, Nvidia are under pressure.

Reference: Xbitlabs