NVIDIA is by far the largest and most profitable maker of video cards and GPUs on the planet. This week NVIDIA announced its Q2 fiscal business update and its profits weren’t up to expectations from investors or analysts.

NVIDIA stated that its Q2 revenue and gross margins are expected to be lower that it previously stated in its conference call in May. NVIDIA says that it expects total revenue to be in the area of $875 million to $950 million. This reduction is blamed in part on market weakness around the world and delayed next generation MCP products along with price adjustments to be competitive.

NVIDIA also announced that it will be taking a one-time charge of $150 million to $250 million against revenue for Q2 to cover anticipated warranty repair and replacement of notebook GPU and MCP products that were built using a weak die/packaging material set in some versions of its previous generation notebooks.

NVIDIA