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Rumours abound over graphics chip vendors financial future

Nvidia ?may leave chipset business?

After a rocky year for Nvidia, the company seems unable to shake off rumours that it will be leaving the chipset sector.

Despite denying such a move in August, the rumours have again surfaced. The latest batch of rumours is reported to have originated with Pacific Crest analyst Michael McConnell.

After issuing a negative report on Nvidia, he wrote: “Our checks confirm that Nvidia has decided to exit the chipset market next year.”

He also questioned the future prospects for the company, saying that as a result of the “fallout from defective notebook GPU’s,” Nvidia’s market share would be likely to suffer in the face of the forthcoming release of Intel’s refreshed Montevina integrated graphics processor.

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