Although NVIDIA has officially released its GeForce GTX400 series graphics cards, the products are not widely available on the market. According to the report at Xbitlabs quoting financial analysts, NVIDIA only has about 10,000 Fermi chips on the market right now and the yields of Fermi chips is only between 20% and 30%.
“We are downgrading NVIDIA to a ‘hold’ and removing our 12-month price target (was $22) after a series of channel checks indicating that Fermi is not ramping well and there could be further product delays. Based on our findings, NVIDIA has very limited supply of Fermi desktop/notebook parts and yields remain poor at around 20-30%,” analyst Rajvindra Gill wrote in a note to clients.
“We believe NVIDIA could lose market share starting in [the second half of 2010], face a more challenging pricing environment and/or experience potentially lower gross margins,” said the analyst.
NVIDIA hasn’t commented on the report yet.