Nvidia shares dropped 13 per cent 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. US$2.2 billion plus or minus two per cent, vs. estimate of US$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 per cent in pre-market trading
Advertisement