Nvidia Discloses a Problem with Older Graphics Chips

Nvidia has disclosed that significant quantities of laptop PCs with older graphics chips have created some problems for their users. Nvidia did not explain clear about the problem, but it mentioned that “it relates to a packaging material used with some of its chips, as well as the thermal design of some laptops”.

The new-gen processors generate a lot of heat that this matter inters lots of stress on the GPU chips. Nvidia has already released a software driver which causes fans to start working earlier to reduce the heat faster. For this current problem Nvidia has to face a lot of loss.

Yahoo reports:

Nvidia will take a charge against second-quarter earnings of US$150 million to $200 million to cover the expected cost of repairing and replacing the products, which include graphics processing units and media and communications processors. It didn't say specifically which of its products were affected.

Furthermore, Nvidia is suffering lower revenue because of pricing pressure and delayed product ramps in second quarter. So, with all these troubles Nvidia predicts to earn between $875 million and $950 million income means it will be some muchdifferent than the amount Nvidia earn in first Quarter. Nvidia could earn $844.3 million in its first 2008 fiscal quarter.

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