Nvidia Lowers Q4 Forecast by $500 million

Nvidia Lowers Q4 Forecast by $500 million

Nvidia Lowers Q4 Forecast by $500 million

Nvidia plans to release their Q4 2019 Fiscal year financials on February 14th, but today Nvidia delivered a surprising change to their guidance by lowering their expected revenue by $500 million. 

Back in November, Nvidia forecast that they would earn $2.7 billion in Q4 of their 2019 fiscal year, but now this forecast has dropped to $2.2 billion, with Nvidia citing “weaker than forecasted sales of its Gaming and Datacenter platforms”. 

In Jensen Huang’s letter to shareholders, Nvidia’s CEO stated that “the global economy decelerated sharply” in Q4, stating that this change has a big impact on their Chinese sales. Jensen Huang also stated that “initial shipments of new high-end RTX GPUs (were) selling above MSRP”, a factor which caused some customers to delay their purchase as they wait for lower prices or “further demonstrations of RTX technology in actual games”.

Nvidia CEO has stated that “macroeconomic factors are beyond our control”, but the company remains confident in their market strategies and their growth drivers. 

In response to this announcement, Nvidia’s share price has already dropped by 13.5%, something that isn’t unexpected given the company’s sudden decrease in expected revenue. Nvidia’s full Q4 earnings report will be released on February 14th 2019.  
   

Nvidia Lowers Q4 Forecast by $500 million  

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