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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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And so if the trend continues, things are going to look a lot better and so we’re hoping for it to continue, we’re working hard together to make it improve. And so I’m hoping that supply will abate, I think was the word I was using or used earlier, sooner than later because we can certainly use the wafers to drive our growth.

Nicholas Aberle - Caris & Company

Got you. Well, I guess what I’m asking…

Jen-Hsun Huang

Either way we’re expecting a lot of wafers this year and improved yields and a lot more supply than obviously now.

Nicholas Aberle - Caris & Company

Yeah. I mean, I just say, in the scenario that you guys don’t get all that you want, which is sounds like you’re at least not going to get all you want in the first half of the year, I mean, you guys got to make decisions on how to allocate that, I was just curious how you make those decisions to allocate that?

Jen-Hsun Huang

We’re making the decisions now. We made the decisions last quarter. We are making decisions this quarter and every commitment that we make we need to fulfill and so we have to be thoughtful about the commitments we do make.

Our customers are working very closely with us now. Everybody has just done a much, much better job aligning forecasts and I appreciate that and so we are making those tradeoffs all the time now.

And so you, I think one of the things that you give up on is you give up on any amount of inventory and we don’t have very much inventory at all in the grand scheme of things, considering the velocity of our business and so there’s not much buffer and everything is hand to mouth. That’s one of the challenges of being constrained. But we’re -- our most important objective is to meet the commitments that we’ve made to our customers.

Nicholas Aberle - Caris & Company

Got you. We haven’t really talked about PlayStation 3 much, I was curious, is that a little bit soft during the quarter. What are your expectations for PS3 this year and given there’s a transition coming up do you expect to be part of that transition?

David L. White

Seasonality they’re lower in our fourth quarter, just the way they ramp for the holidays and so forth, so it was seasonally weaker in the fourth quarter. I think it’d be probably inappropriate for us to guide what we think Sony’s business is going to do over the next year, so I’m not sure I want to answer the balance of that question.

Nicholas Aberle - Caris & Company

Thanks, guys.

David L. White

Thanks, Nick.

Jen-Hsun Huang


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