Nvidia Tumbles After PC Industry Slump Crushes Revenue

Missing estimates of more than $1 billion in Nvidia Corp's quarterly revenue, surprising investors accumulated on more evidence that demand for electronic components is quickly drying up after a two-year surge.

Arrow

Fiscal second-quarter revenue was about $6.7 billion, lower than its earlier estimate of $8.1 billion, the company said in a statement on Monday. Shares of the most publicly traded chipmaker fell 6.3%

Arrow

The Nvidia report underscored a squeeze wave across the industry: declining consumer spending, rising inflation and a push to return to offices have reduced purchases of personal computers. Intel Corp.,

Arrow

Nvidia's graphics chips are a staple of high-end PCs that are used to get the most realistic gaming experience. Most major gaming companies have reported a decline or weak outlook in sales this year

Arrow

Which sells Xbox consoles. The add-in card created by Nvidia is also an important part of the systems used by currency miners, which makes the company's earnings sensitive to fluctuations in those markets.

Arrow

"Our gaming product sales projections have dropped significantly as the quarter progresses," Nvidia Chief Executive Officer Jensen Huang said in the statement. "

Arrow

"As we expect macroeconomic conditions to continue to impact selling, we took action with our gaming partners to adjust channel prices and inventory. "

Arrow

Explore More Web Stories

Arrow