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NVIDIA Corp. Q4 2010 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 12:45 AM ET March 16 2010


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Jen-Hsun Huang

Yeah. Thanks a lot, Dan.

Operator

Our next question comes from the line of Craig Berger with FBR Capital. Please proceed with your question.

Craig Berger - Friedman, Billings, Ramsay, & Co., Inc.

Hey, guys. Nice job on the results. Can you talk a little bit about attach rates for the GPUs both in desktop and notebook, where were they, where are they, were do you think they can go?

Jen-Hsun Huang

Well, I don’t think this quarter the GPU attach rate changed substantially…

David L. White

Pretty flat.

Jen-Hsun Huang

... and so I’ll review the numbers again, but my last look at the numbers it was relatively stable. If anything, on the notebook side, it increased almost slightly is my recollection. And so, yes, there you go, okay?

So on the desk -- so Chris just showed me some numbers. On the desktop side they were flat and on the notebook side they were up about 5 points. And so my guess is that people are increasingly recognizing the importance of the GPU and there’s so many things that you do now that the GPU adds value to.

And the video game market is obviously still very large, the online game market is very, very large and people who are enjoying high-definition movies on their PC or just want snappy graphics where two processors simply does a better job than one for their PCs, they’re just increasingly recognizing the benefits of PCs -- of GPUs.

The other thing is that in the consumer market the GPU attach rate is just much higher and the consumers segment is really the fastest growing segment right now. And so our sense of that the GPU attach rate’s going to continue to grow.

The separation between the integrated graphics whether it’s on a chip set or on a CPU integrated, that comparison to a discreet GPU is, in fact, the technology is growing further and further apart. The GPU is, in fact, becoming more and more advanced relative to integrated graphics versus previous years and so my sense is that this trend is going to continue.

Craig Berger - Friedman, Billings, Ramsay, & Co., Inc.

My -- thank you for preempting my follow up so I’ll ask another one, which is, I guess, for David. How do you see operating expenses tracking over the rest of this year just generally. Should it be sloping up, are you guys going to be increasing your investment levels? Any color there would be great for the models?

David L. White

Well, we guided flat, obviously and I think as we talked about last quarter, our quarter just before just ended was a 14-week quarter and so we had more expenses in that quarter than what we would typically carry.


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