Nvidia (NASDAQ: NVDA; /ɪnˈvɪdi.ə/ in-vid-ee-ə)[1] is an American global technology company which specializes in the development of graphics processing units and chipset technologies for workstations, personal computers, and mobile devices. Based in Santa Clara, California, the company has become a major supplier of integrated circuits (ICs), graphics processing units (GPUs) and chipsets used in graphics cards, personal-computer motherboards, and video game consoles.
Notable Nvidia product lines include:
the GeForce GPU series for gaming and media playback on personal computers
the Quadro GPU series for computer-aided design and for digital content creation (DCC) on workstations
the Tegra system-on-a-chip series for mobile devices
the Tesla series for supercomputing
the nForce series of integrated motherboard chipsets

NVIDIA Corporation (NVIDIA), incorporated in 1993, is a provider of visual computing technologies and the inventor of the graphics processing unit (GPU). The Company’s products are designed to generate graphics on workstations, personal computers, game consoles and mobile devices. NVIDIA serves the entertainment and consumer market with its GeForce graphics products, the professional design and visualization market with its Quadro graphics products, the computing market with its Tesla computing solutions products, and the mobile computing market with its Tegra system-on-a-chip products. NVIDIA operates in four major product-line operating segments: the GPU business, the professional solutions business (PSB), the media and communications processor (MCP), business, and the consumer products business (CPB).
The Company’s GPU business is comprised primarily of its GeForce products that support desktop and notebook personal computers (PCs), in addition to memory products. Its PSB is comprised of its NVIDIA Quadro professional workstation products and other professional graphics products, including its NVIDIA Tesla computing products. Its MCP business comprised primarily of ION mGPU products. Its ION family of products addresses the integrated core logic market. NVIDIA’s CPB is comprised of its Tegra mobile products that support tablets and smartbooks, smartphones, personal media players (PMPs), Internet television, automotive navigation, and other similar devices. CPB also includes license, royalty, other revenue and associated costs related to video game consoles and other digital consumer electronics devices. Original equipment manufacturers (OEMs), original design manufacturers (ODMs), add-in-card manufacturers, system builders and consumer electronics companies worldwide utilize its processors as a core component of their entertainment, business and professional solutions.
GPU Business
The Company’s GPU business is comprised primarily of its GeForce products that support desktop and notebook PCs, plus memory products. Its GPU business is focused on Microsoft Windows and Apple PC platforms. GeForce GPUs power PCs made by or distributed by most PC OEMs in the world for desktop PCs, notebook PCs, and PCs loaded with Windows Media Center and other media extenders, such as the Apple TV. GPUs enhance the user experience for playing video games, editing photos, viewing and editing videos and high-definition (HD), movies.
During the fiscal year ended January 31, 2010 (fiscal 2009), NVIDIA introduced its CUDA GPU architecture, codenamed Fermi. It also launched a development environment for parallel computing. During fiscal 2009, it also delivered its first 40 nanometer GPUs to customers. In addition, it launched Optimus technology, a combination of software and hardware innovations for notebooks.
Professional Solutions Business
NVIDIA’s PSB is comprised of its Quadro professional workstation products and other professional graphics products, including its Tesla computing products. Quadro products are fully certified by several software developers for professional workstation applications and are designed to deliver the graphics performance and precision required by professional applications. During fiscal 2009, it launched RealityServer, a combination of GPU hardware and software with the ability to stream interactive, photorealistic three dimensional (3D) applications to any Web- connected PC, laptop, netbook or smart phone.
MCP Business
MCP Business comprised primarily of its ION mGPU products. Its ION family of products addresses the integrated core logic market. Core logic is the computer’s central nervous system, controlling and directing high speed data between or CPU, the GPU, storage, and networks.
Consumer Products Business
The Company’s CPB is comprised of its Tegra mobile products that support smartphones, smartbooks, tablets, personal media players (PMPs), Internet television, automotive navigation, and other similar devices. CPB also includes license, royalty, other revenue and associated costs related to video game consoles and other digital consumer electronics devices.
The Company competes with AMD, Broadcom Corporation, Silicon Integrated Systems, Inc, VIA Technologies, Inc, Intel, Matrox Electronics Systems Ltd., SIS, VIA, Freescale Semiconductor Inc., Fujitsu Limited, Imagination Technologies Ltd., ARM Holdings plc, Marvell Technology Group Ltd, NEC Corporation, Qualcomm Incorporated, Renesas Technology, Samsung, Seiko-Epson, ST Microelectronics, Texas Instruments Incorporated, and Toshiba America, Inc.


Other new products introduced in the final quarter of 1999 included the Aladdin TNT2 for PCs costing less than $1,000. The chipset was the result of NVIDIA's alliance with Taiwan-based Acer Labs and incorporated NVIDIA's TNT2 graphics core with Acer Labs' Northbridge design. In November NVIDIA launched Quadro, the first GPU designed for workstations.
For 1999 NVIDIA reported revenue of $374.5 million, more than double that of the previous year, and net income of $41 million. Following a highly successful year, NVIDIA began building a new headquarters campus in Santa Clara, California. In January the company sued competitor S3 over five patents, but the two companies settled the next month by entering into a seven-year patent cross-licensing agreement. In April NVIDIA announced a secondary stock and bond offering designed to raise about $400 million in capital. The company also received an advance payment of $200 million from Microsoft Corporation, which had selected NVIDIA as the sole supplier of graphics processing units for its forthcoming X-Box video game console.
For the next several years NVIDIA and Ontario-based ATI Technologies Inc. battled for the top spot among graphics chip designers. At the Windows Hardware Engineering Conference in April 2000, ATI introduced a graphics chip it claimed was the best in the industry, only to be bested 24 hours later when NVIDIA introduced the GeForce 2 GTS, which delivered twice the performance of the GeForce256. ATI's Radeon256 could process up to 1.5 billion texels per second, while the GeForce256 could process 1.6 billion texels per second. Although NVIDIA could boast having the fastest graphics chip, it trailed ATI in market share with an estimated 25 to 30 percent of the graphics chipset market.
NVIDIA followed up in June 2000 by introducing the GeForce2 MX for the mainstream desktop graphics market. The GeForce2 MX consumed only four watts of power and was suitable for mobile PCs, PC workstation applications, and Apple's Macintosh computers. The GeForce2 MX featured twin-display architecture that enabled it to serve multiple monitors. Its digital control technology made 2-D and 3-D graphics, images, and video brighter and cleaner. In November 2000 NVIDIA introduced the GeForce2 Go, the industry's first mobile GPU for portable PCs. CEO Jen-Hsun Huang called the GeForce2 Go "one of the most important [product introductions] in the history of our company," when it was introduced at Comdex in the fall of 2000.
Later in 2000 NVIDIA announced a new communications companion chip for the X-Box as part of its partnership with Microsoft. The media communications processor (MCP) was a kind of super-chip that combined traditional I/O (input/output), communications, and audio functions. The MCP went beyond its contract with Microsoft to produce the graphics processor for its X-Box. While NVIDIA was contracted to produce the chips for the X-Box, the MCP was designed to be used in future PC architecture and information-appliance components. Utilizing NVIDIA's signal processing technology, the MCP could process audio signals and link an X-Box to other peripherals through a phone line or a wireless network.
NVIDIA continued to aggressively contest its patents in 2000. After settling with S3 early in the year, NVIDIA filed suit against 3dfx Interactive Inc. in August claiming infringement of its graphics acceleration technology patents. At the time 3dfx also had a lawsuit outstanding against NVIDIA and in October won a favorable ruling. In December, however, it was announced that NVIDIA would acquire the assets of 3dfx Interactive for $70 million in cash and one million shares of common stock.
For its fiscal year ending January 28, 2001, NVIDIA reported another healthy increase in revenue to $735.3 million, nearly double the previous year's revenue, and net income of $98.5 million. The company also earned several awards at Comdex Fall 2000 and was awarded the Editor's Choice Award from Cadence magazine.
The year 2001 began with a healthy market for graphics processors, although the industry had experienced substantial consolidation. According to EBN, the number of firms producing graphics controllers had shrunk from 45 to 12 over the past five years. Several key players, including S3 Inc., NeoMagic Corporation, and Intel Corporation, either had exited the graphics market or cut back on their new product development. During 2001 NVIDIA continued to post record revenue, and it ended the year with revenue of $1.37 billion, again nearly doubling revenue of the previous year. Net income also rose substantially to $176.9 million. The company's stock price rose from $16.50 at the beginning of the year to $66.90 at the end of 2001. In December 2001 NVIDIA replaced Enron Corporation in the S&P 500, and the company was named "The Most Respected Public Fabless Semiconductor Company" by the Fabless Semiconductor Association.
During 2001 NVIDIA completed development of its graphics chip for the Microsoft X-Box, which it called GeForce3. GeForce3 represented the core graphics that would be found in X-Box, which was scheduled for introduction later in the year. The GeForce3 was the graphics industry's first programmable GPU and was chosen by all of the top PC and graphics board OEMs. The chip's programmable features enabled developers to create custom lighting and transform custom pixel effects. NVIDIA also expanded its GeForce2 family of GPUs in the first quarter of 2001. In October NVIDIA launched improved versions of its GeForce3 product line under the name Titanium.
Other new products included the nForce line of chipsets. The nForce chipset represented a move into the core logic market for NVIDIA, where the company would compete with Intel Corporation and other chipset vendors. It included an integrated graphics controller and a separate audio processor and was designed to offer performance up to ten times better than any other PC graphics accelerator. It was compatible with Advanced Micro Devices Inc.'s Athlon processors and Duron-based systems and also was being marketed to PC OEMs to feature in their high-volume systems.
After NVIDIA's stock price doubled in October 2001, some of the company's employees were indicted by a federal grand jury for insider trading. One engineer was fined $250,000. In early 2002 NVIDIA announced that it was conducting an internal review of certain accounting procedures in response to inquiries from the Securities and Exchange Commission.
The year 2002 was more challenging for NVIDIA. Although the company reported record first quarter revenue of $582.9 million, its revenue and net income fell in the second and third quarters, with the company reporting a third quarter loss of $48.6 million on revenue of $430.3 million. The drop in revenue came from a general weakness in the PC market as well as from the write-off of NVIDIA's inventory of first-generation nForce chips. Adding to the company's woes was a contract dispute with Microsoft over the price of its graphics processor designed for the X-Box. Microsoft was pressing NVIDIA to offer it a better price on the processors than was in the original contract.
New products introduced in 2002 included the GeForce4 graphics accelerator, which offered significantly enhanced overall 3-D performance; the Quadro4 family of GPUs for workstations; and NVDVD, a software-based DVD player/decoder designed to power DVD playback for a new generation of NVIDIA-based mobile and desktop PCs. The GeForce4 was based on 0.15 micron process and included 63 million transistors, a 10.4 gigabyte memory bandwidth, a 128-megabyte frame buffer, and a 300MHz core. The Quadro product line was a professional graphics solution for real-time character animation, next-generation game development, and visual effects production.
As NVIDIA faced a challenging business environment at the end of 2002, it was looking forward to the introduction in 2003 of its next-generation NV30 chip, which would run on 500MHz and utilize eight pixel pipelines. The NV30's core memory would be the first to use DDR-II memory, allowing it to run at an effective rate of one GHz. NVIDIA also was pushing to maintain its technological lead in the graphics market with the creation of Cg, a high-level 3-D language. NVIDIA hoped that Cg would be adopted as the language of choice over a competing OpenGL 2.0 language. As part of that effort NVIDIA acquired Exluna Inc., a film-quality graphics rendering company, in July 2002 to facilitate the use of Cg in the film industry.
Principal Competitors: 3Dlabs Inc., Ltd.; ATI Technologies, Inc. (Canada); Creative Technology Ltd. (Singapore); Intel Corporation; VIA Technologies, Inc.


OVERALL
Beta: 1.63
Market Cap (Mil.): $11,771.58
Shares Outstanding (Mil.): 595.13
Annual Dividend: --
Yield (%): --
FINANCIALS
NVDA.O Industry Sector
P/E (TTM): 47.35 18.68 19.91
EPS (TTM): 375.86 -- --
ROI: 7.97 5.86 15.90
ROE: 8.66 6.20 17.49

Statistics:
Public Company
Incorporated: 1993
Employees: 1,300
Sales: $1.37 billion (2002)
Stock Exchanges: NASDAQ
Ticker Symbol: NVDA
NAIC: 511210 Software Publishers

Key Dates:
1993: NVIDIA is founded by Jen-Hsun Huang, Chris Malachowsky, and Curtis Priem.
1995: NVIDIA introduces NV1, the first mainstream multimedia processor.
1997: NVIDIA introduces RIVA 128, the first high-performance, 128-bit Direct3D processor.
1999: NVIDIA goes public in January.
2000: Microsoft Corporation selects NVIDIA to provide the graphics processors for its forthcoming gaming console, X-Box.
2001: NVIDIA introduces GeForce3, the industry's first programmable graphics processor.

Name Age Since Current Position
Huang, Jen-Hsun 48 1993 President, Chief Executive Officer, Director
Burns, Karen 43 2011 Interim Chief Financial Officer and Principal Financial Officer
Shannon, David 55 2009 Executive Vice President, General Counsel, Secretary
Puri, Ajay 56 2009 Executive Vice President - Worldwide Sales
Shoquist, Debora 56 2009 Executive Vice President - Operations
Byron, Michael 45 2011 Vice President - Finance, Principal Accounting Officer
Worrall, Bob 50 2011 Chief Information Officer
Miller, William 65 2009 Lead Independent Director
Jones, Harvey 58 1993 Independent Director
Coxe, Tench 53 1993 Independent Director
Stevens, Mark 51 2008 Independent Director
Gaither, James 73 2009 Independent Director
Seawell, A. Brooke 63 1997 Independent Director
Perry, Mark 55 2005 Independent Director


Address:
2701 San Tomas Expressway
Santa Clara, California 95050
U.S.A.
 
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