GPU maker Nvidia has warned that its current-quarter revenue will be below analyst estimates.
Nvidia, has suffered as people have put off buying new PCs, where the company gets the majority of its sales.
The company has been investing on its Tegra mobile processor business as it bets on its graphics expertise to make high-performance processors for mobile devices.
Nvidia expects current-quarter revenue of $1.05 billion while analysts, on average, estimated $1.09 billion.
Tegra does not appear to be the panacea that Nvidia hoped. Its Tegra business will be flat this year, and the company needs to integrate LTE features on upcoming Tegra versions to make them compatible with high-end carrier networks.
Analysts thought that the Tegra business would suffer because smartphone and tablet makers have been opting for more sophisticated chips such as those made by Qualcomm.
Second-quarter revenue fell 6.4 percent to $977.2 million, while net income fell to $96.4 million, from $119 million a year earlier.
Jen-Hsun Huang, president and chief executive officer of Nvidia, remained his usual optimistic self and claimed that the Nvidia's GPU business continued to grow.
" We look forward to a strong second half, with new Tegra 4 devices coming to market, Shield is moving beyond the US and broader sampling of Project Logan, our next-generation Tegra processor, which brings Kepler, the world's most advanced GPU, to mobile," he enthused.