Nvidia Sinks After Warning on Revenue, Especially in China
(Bloomberg) -- Nvidia shares drop 13% in early trading after cutting fourth-quarter revenue guidance as Gaming and Datacenter revenues come below company’s expectations. CEO Jensen Huang cited an "extraordinary, unusually turbulent, and disappointing quarter.”
- Deteriorating macroeconomic conditions, particularly in China, impacted consumer demand for NVIDIA gaming GPUs
- In addition, sales of certain high-end GPUs using NVIDIA’s Turing architecture were lower than expected
- Sees 4Q rev. $2.2 billion plus or minus 2%, vs. estimate of $2.7 billion
- In Datacenter, revenue also came in short of expectations as number of deals in the company’s forecast did not close in the last month of the quarter as customers shifted to a more cautious approach
- AMD shares also down 5.9% in pre-market trading
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