All in all, it's been a bad week for NVIDIA, and it's only Wednesday.
First, Apple has eradicated NVIDIA from the iMac lineup, choosing to go with ATI. With the next Mac Pro refresh NVIDIA will be given the boot from that platform too. NVIDIA still has a foothold in the MacBook/MacBook Pro lines ... for now, but expect that to evaporate with future hardware refreshes.
Apple and ATI, sitting in a tree ...
Then there's the lowering of the outlook for the second fiscal quarter. And this is no small reduction either, it's a 15% cut, down from $950 - $970 million to $800 - $820 million. Increased costs and weak European/China demand are being blamed.
Then shareholders gave NVIDIA a spanking. Shares were down 3% in regular trading and more than 6.6% in after-hours trading.
NVIDIA's Fermi gamble doesn't seem to be paying off, and losing the iMac and the Mac Pro underlines the lack of confidence that OEMs have in NVIDIA's current silicon lineup.