Hardware company Nvidia cut 19 percent of its estimates for fourth-quarter revenue ahead of next month's balance sheet, reducing its estimate of $ 2.7 billion to $ 2.2 billion.
The company had, as reported by Ars Technica, already suffered a fall in demand after a fall in cryptographic interest rates, but this latest reduction is driven mainly by lower-than-expected sales of its RTX GPU line and some economic uncertainties . "
Nvidia now says sales of the RTX line were below the company's initial expectations, which could be summed up by the fact that few games released have taken advantage of some of RTX's unique features yet. As pointed out by Ars, currently Battleground is the only PC game on the market that makes use of RTX ray tracing technology.
"These products provide a revolutionary jump in performance and innovation with real-time AI and raytracing, but some customers may have delayed their purchase while waiting for lower prices and more demonstrations of RTX technology in real-world games," said Jensen Huang, CEO of Nvidia. a letter to investors.
These economic uncertainties hit the consumer and datacenter segments of Nvidia's customary business. "As we worked through the fourth quarter, the global economy slowed sharply, particularly in China, affecting consumer demand for Nvidia gaming GPUs," explains Huang. Later in the letter, he notes that a handful of business deals that deal with cloud computing or deep learning models did not close at the end of the quarter as "customers around the world became increasingly cautious due to economic uncertainties ".