Graphics manufacturing giant Nvidia has been anointed “Company of the Year” by one of America’s leading business magazines, Forbes.
The publication hailed Nvidia for mounting an effort that has led to its market domination in the “breackneck, highly lucrative graphics-chip business.”
Since late 2006, Nvidia has bested its only rival, AMD/ATI, in the niche category of high-end computer graphics cards. Its technology has also been put to use in the PlayStation 3 and the first Xbox, as well as integrated graphics chips on motherboards.
“The more content there is, the more visual interest there can be, the more processing horsepower people need,” said Nvidia CEO Jen-Hsun Huang.
According to Mercury Resarch, the company owns 62 percent of the desktop PC graphics card market. It has also strengthened its gross margin to 46 percent, up from 29 percent in 2004.
Gross profits at the end of this fiscal year will mark a 33 percent increase at $4 billion and net profits will come in at a 50 percent increase of $900 million.
Since going public, its shares have risen in value by a factor of greater than 21.