April 11 (Bloomberg) -- Nvidia Corp. Chief Executive Officer Jen-Hsun Huang said that a decision to delay a new version of its Tegra mobile-phone chip is contributing to “flat” growth in that business this year.
Tegra growth will be little changed from a year earlier, Huang told analysts today at a company event. In addition, business conditions will be “rather muted” in the first half of the year as the personal-computer market declines, he said.
Nvidia, a maker of graphics processors that help make games and video look more vibrant and realistic, is working to lessen its dependence on the PC market, which makes up most of revenue. Tegra is an applications processor for phones that Nvidia is trying to use to grab a slice of the faster growth in smartphones and tablet computers.
Huang said that Santa Clara, California-based Nvidia had decided to delay the introduction of a processor called Tegra 4 in order to bring forward another product, called Tegra 4i, which has a built-in cellular modem, something that the market is demanding.
Shares fell less than 1 percent to $12.77 at the close in New York. The stock has climbed 4.2 percent this year.
Nvidia shares pared earlier losses after Huang said the company will spend all of the $1 billion it has allotted to share repurchases and dividend payments this year by the fiscal fourth quarter. The commitment demonstrates Nvidia’s confidence in its cash flow, he said.
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