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.”

Nvidia Sinks After Warning on Revenue, Especially in China
  • 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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