Nvidia had more disappointing news for investors Monday, but for once the cryptocurrency mining slump was not directly to blame.
In updated guidance released Monday, the graphics card manufacturer warned it now expects to report only $2.2 billion of revenue for its fiscal 2019 fourth quarter, which ends Jan. 31, down from a previous estimate of $2.7 billion.
The earlier forecast had already factored in a drop in demand for graphics processing units used in crypto mining, Nvidia said, and sales of the extra graphics cards have kept pace with those expectations.
"Exiting Q3, we estimated channel inventory would be largely depleted within one to two quarters, or between February and April," CEO Jensen Huang wrote in a letter to shareholders.
The problem is that economic woes and uncertainty, particularly in China, hurt demand for GPUs among Nvidia's other customers - gamers and data centers.
"Q4 was an extraordinary, unusually turbulent, and disappointing quarter," Huang wrote.
Nvidia will report its full fourth-quarter results on February 14.
The company has been warning of a "Substantial decline" in revenue from cryptocurrency miners for some time now.
Nvidia anticipated bringing in $100 million during the second quarter of fiscal 2019, but only saw $18 million.
Its competitor, AMD, had likewise cautioned that a drop in demand for GPUs by miners would "Materially" impact its GPU business.
Nvidia Says Q4 Crypto Miner Demand Was as Weak as Expected
gepubliceerd op Jan 28, 2019
by Coindesk | gepubliceerd op Coinage
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