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Market Update : 
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

Well, I was trying not to give you an exact number and I probably shouldn’t have given you a number at all because we really don’t know. When supply -- we knew that during -- let me tell you what we do know.

We knew that during the quarter channel inventory was too low. When David said that channel inventory was five weeks, five weeks average, in fact, means gap outs in many regions around the world.

And you can only measure channel inventory really in the final analysis to its averages, but we know that certain regions are much hotter than other regions and it’s hard to keep them from stocking out.

Now the second thing is, OEMs, without exception, notebook OEMs were hand-to-mouth the whole quarter and we were fighting hard to keep them from gapping out throughout the quarter and we weren’t successful most of the time. And so there were challenges in fulfilling the demand that we did have throughout the quarter and so…

Daniel Berenbaum - Auriga USA

And for, am I correct in assuming you’re talking about really GPU, there were no shortages in chip set or Tegra or in Quadro?

Jen-Hsun Huang

Well, Tegra and Quadro, Tegra’s production ramp is rather modest right now.

Daniel Berenbaum - Auriga USA

Right.

Jen-Hsun Huang

And Quadro’s volume relative to GeForce is small, although…

Daniel Berenbaum - Auriga USA

Okay.

Jen-Hsun Huang

… the revenues are high, the actual units are relatively small. And so the final analysis, with most, whenever you have a gap out situation it’ll be in your highest volume products and in our case it would GeForce.

Daniel Berenbaum - Auriga USA

Okay. And then just to follow up on that. Is this giving you any pricing power or was there any contribution, gross margin? Obviously you are printing a good gross margin number, are you getting some pricing power because of this?

Jen-Hsun Huang


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