Nvidia Corporation’s OEM and IP Business Declined in the Last Quarter

In the last quarter, all businesses of Santa Clara, California based Nvidia, the American technology company showed progress except its OEM and IP business. Nvidia's businesses range from designs graphics processing units aimed at the gaming market and chip units for mobile computing as well as automotive market.

The business dropped thirteen percent on the quarter on quarter basis with a twenty one percent year on year drop.

The company's management also made it clear that they did not expect its OEM and IP to grow in the quarter ahead.
Nvidia last year exited the handset market as few of its designs could prove to be a winner in the market. However, the company's Tegra mobile processors continues to be used in some of the current-generation devices which includes Google's Pixel C and Nexus 9 tablets, along with the company's own Shield slate.

CEO Jen-Hsun Huang said during the earnings call that the OEM business is dragging part of the company's overall business. Its margins are also notably lower than the corporate average. That makes it appear Nvidiais not going to make too much effort to make OEM designs get back to its best.

Earlier Huang had said he expects the business to "stabilize" and hinted the company will "probably see continued interest" from makers of personal computers with continuing design.