NVIDIA now estimates its Q4 revenue to be $2.20 billion compared to previous guidance of $2.70 billion. The company cited weakness in gaming and data center segments, as well as “deteriorating macroeconomic conditions, particularly in China.”
In gaming, NVIDIA said there was a sequential decline due to excess mid-range channel inventory following the crypto-currency boom that proceeded as expected. However, consumer demand for NVIDIA gaming GPUs weakened faster than expected and sales of certain high-end GPUs using NVIDIA’s new Turing architecture were lower than expected.
In the data center segment, revenue also came in short of expectations. 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.
“Q4 was an extraordinary, unusually turbulent, and disappointing quarter,” said Jensen Huang, founder and CEO of NVIDIA. “Looking forward, we are confident in our strategies and growth drivers. The foundation of our business is strong and more evident than ever – the accelerated computing model NVIDIA pioneered is the best path forward to serve the world’s insatiable computing needs. The markets we are creating – gaming, design, HPC, AI and autonomous vehicles – are important, growing and will be very large. We have excellent strategic positions in all of them.”
