by Larry Dignan
July 3rd, 2008 @ 5:04 am

Updated: Nvidia said its fiscal second quarter revenue will fall well short of targets because of weak demand, pricing pressure from AMD’s ATI and a faulty graphics processors on older notebook systems.

In an SEC filing, the company said it is offering a driver that keeps fans running to relieve stress on the faulty chips in the field. The company said after the bell Thursday that second quarter revenue is expected to by $875 million to $950 million (statement, Techmeme).

The company reported first quarter revenue of $1.15 billion and was projecting the second quarter to be a seasonally average one with a revenue decline of about 5 percent to $1.09 billion. Wall Street was expecting second quarter earnings of 34 cents a share.Nvidia cited “end-market weakness around the world, the delayed ramp of a next generation MCP, and price adjustments of our GPU products to respond to competitive products.

” It’s unclear which of those factors contributed the most to the shortfall. Nevertheless, Nvidia’s quarter unraveled dramatically. On May 8, CEO Jen-Hsun Huang said: “We have no reason to believe that Q2 will be anything other than seasonal. Seasonal to us means a decline of 5% plus or minus.”