Nvidia is on track to report quarterly sales below that of rival AMD for the the first time since 2014.
Nvidia Corp. executives on late Wednesday forecast another revenue shortfall in the current quarter, after confirming an earlier warning by showing a sharp reduction in profit, while the chip maker assured analysts it was working its way through inventory prior to the release of its new chip architecture.
That puts Nvidia on track to report quarterly sales below that of Advanced Micro Devices Inc. AMD, +0.26% for the first time since the third quarter of 2014. In its recent earnings report, AMD forecast third-quarter sales of $6.5 billion to $6.9 billion. Throughout the call, Nvidia executives stressed that supply-chain problems, and not demand, were the main culprits lowering the outlook.
Nvidia also booked a $1.22 billion inventory charge for data-center and gaming products, given its revised expectations. The company said about $570 million of the charge is for inventory on hand and about $650 million of it is for inventory purchase obligations “in excess of our current demand projections.”
“We wanted folks to understand that prior-architecture chips and things that we looked at when we reassessed our estimates for demand going forward, and the inventory that we both had on hand and procured for, we took an adjustment,” Kress told MarketWatch. PC sales have pulled back considerably after a two-year surge, and spending on videogames and gear for them has also come back to earth. At the same time, drops in cryptocurrency prices have made mining less profitable; Nvidia cards have been used extensively to mine for Ethereum ETHUSD, -1.66% and other crypto.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Nvidia Stock Earnings Preview: NVDA strongly biased to downside ahead of Q2 resultsNvidia will release official Q2 earnings after the close on August 24. Wall Street consensus is for adjusted EPS of $0.52 on $6.7 billion in sales, $NVDA pre-reported Q2 revenue due to demand weakness by claymarkets stocks trading
Lire la suite »
Cathie Wood dumps Nvidia stock ahead of resultsIs Cathie Wood fearing more bad news from Nvidia?
Lire la suite »
Nvidia Warning Left Room For Added Crypto SlackNvidia investors are already braced for weak Q2 results after the stock market closes Wednesday.
Lire la suite »
Toyota recognizes California authority to set vehicle emissions standardsToyota Motor Corp on Tuesday said it recognized the state of California's authority to set vehicle emissions standards under the U.S. Clean Air Act.
Lire la suite »
Intel, Brookfield to invest up to $30 bln in Arizona chip factoriesIntel Corp and Canada's Brookfield Asset Management on Tuesday agreed to jointly fund up to $30 billion for the U.S. chipmaker's leading-edge chip factories in Arizona.
Lire la suite »
Comcast to sell its stake in NBC Sports WashingtonComcast Corp. is selling its stake in NBC Sports Washington to Monumental Sports & Entertainment. Monumental is buying NBCUniversal's 67% majority share.
Lire la suite »