Repercussions
While this made a big dent in NVIDIA's margins, it also had to contend with what it hopes will be a one-off charge to sort out the mess created by its die/packaging crisis, in which a substandard material used in the manufacturing of some of NVIDIA's products is causing high failure rates.
All this led to some pretty poor financial results for the last quarter and a historically very low price for NVIDIA's stock. Furthermore, the die/packaging woes look set to continue, with a class action law suit from NVIDIA's own shareholders alleging NVIDIA knew about the problem long before it went public with it.
So it's not too surprising to see NVIDIA embark on a period of consolidation. It needs all the resources it can muster to fight a war on two fronts against its main competitor and its own shareholders and it will be interesting to see how it fares.
