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NVIDIA reduced its quarterly revenue forecast by $ 500 million, the company's shares fell by 15% and continue to fall



NVIDIA reduced its quarterly revenue forecast by $ 500 million, the company's shares fell by 15% and continue to fall

Discrete graphic market leader NVIDIA adjusted down the projected performance of its activities in the last quarter. In the frame of reference Green was fourth quarter of fiscal year 2019.

The California chipmaker now expects revenue in the reporting period to be about $ 2.2 billion ± 2 percent, instead of $ 2.7 billion ± 2 percent, which the manufacturer originally counted . That is, in fact, NVIDIA will receive $ 500 million less. It is now expected that the gross profit indicator will be 55.0% instead of the original 62.3%.

The reason for the correction in the company is called "deterioration of macroeconomic conditions, especially in China".

NVIDIA bluntly says that the decline in sales is due to deteriorating demand in the gaming segment. Speaking about the decline in game GPU sales, the previous forecast took into account the negative consequences of a decline in the cryptomeda miners' interest. NVIDIA admits that some high-performance GPUs in Turing's new architecture sold worse than expected. But NVIDIA also suffered from a decline in sales in the data center solutions segment. Several deals, which were taken into account in the forecast, could not be closed in the last month because customers decided to play safe and wait.

"The fourth quarter was extraordinary, exceptionally stormy and disappointing. Looking ahead, we are confident in our strategies and growth mechanisms. The foundation of our business is stronger than ever, "said NVIDIA founder and CEO Jensen Huang.

It remains to wait for the report to understand how much the results of one or another division have deteriorated.

NVIDIA will release a full report for the fourth quarter of fiscal year 2019 and a forecast for the first quarter of fiscal year 2020 on February 14.

Of course, after the disappointing news to investors about falling sales, the company's shares collapsed – at 15%. And so far, NVIDIA has not been able to recoup the loss. In addition, your stock continues to fall in price.

It remains to be noted that previously his quarterly revenue forecasts also cut Apple and Samsung, which also attributed the drop in sales mainly to China.

Source: TechPowerUp


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