There appears to be trouble at Nvidia after the firm released its financial guidance for Q4 of fiscal year 2019.
The guidance is not the exact earnings at the firm during the quarter but rather a projection ahead of the earnings call on 14th February.
The main headline of the guidance is that revenue might be lower than expected, $500 million lower in fact. On the back of that news Nvidia’s share price fell as much as 15 percent according to Fortune.
The firm cited deteriorating macroeconomic conditions – particularly in China – which “impacted consumer demand for Nvidia gaming GPUs”.
It also appears that RTX GPUs did not sell all that well.
“These products deliver a revolutionary leap in performance and innovation with real-time ray tracing and AI, but some customers may have delayed their purchase while waiting for lower price points and further demonstrations of RTX technology in actual games,” Nvidia said.
The firm also pointed to excess mid-range inventory it has from the cryptocurrency mining boom.
Simply put – RTX cards are too expensive and there are too few games that boast support for real-time ray-tracing for folks to justify forking out as much as R18 999 for an RTX 2080.
With that having been said Nvidia’s revenue from its Datacenter division is also down.
“A 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,” the firm explained.
Founder and chief executive officer at Nvidia, Jensen Huang said that the quarter had been especially tough on the firm.
“Q4 was an extraordinary, unusually turbulent, and disappointing quarter. Looking forward, we are confident in our strategies and growth drivers,” Huang said.
Nvidia was not alone in its loses on the stock market, AMD saw its price dip by eight percent.[Source – Nvidia]