THE Nvidia warned on Monday that second-quarter revenue will decline 19% from the previous quarter due to weakness in demand for video gameswhat did the actions gives company fall by about 8%.
The chip designer released preliminary results for the fiscal second quarter, just days after Intel, Qualcomm and Sony Group publish lower sales expectations due to fears of weak demand for personal computers and cell phones.
Nvidia said preliminary revenue from the video game chip unit, which includes sales of high-end graphics cards for computers and laptops, fell 44% from the previous quarter to $2.04 billion.
Last month, the Microsoft announced a drop in revenue for the Xbox console division and Sony reduced its PlayStation sales forecast.
Harsh Kumar, an analyst at Piper Sandler, said the magnitude of the decline reported by Nvidia was surprising.
“Nvidia’s downturn likely includes the chips they sell to the retail market. cryptocurrencieswhich has been weak, which is why the slowdown is so significant,” said Sandeep Deshpande, an analyst at JP Morgan.
Nvidia has increased the supply of processors for mining cryptocurrencies, which represented a revenue of 266 million dollars in the second quarter of last year.
The company expects to report fiscal second quarter overall revenue of about $6.70 billion on Aug. 24.
Analysts estimated revenue of $8.1 billion, with video games accounting for $3.12 billion, according to data from the Refinitiv.
Source: Moneytimes
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