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Nvidia’s low Turing GPU sales a “real punch in the gut” and its stock is plummeting

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Nvidia has admitted its Turing GPUs are off to a slow start and is currently trading 14% down after bearing all in a telling press release. The green team has now updated its financial outlook for Q4, swiftly chopping $500 million off its revenue as it reevaluates its guidance for the quarter from $2.7 billion to $2.2 billion. It’s all down to poor gaming and data centre revenue, its core business, which fell massively short of what Nvidia was expecting. Excess mid-range channel inventory – or simply too many GTX 1060s – has been a bug bear for the company every since cryptocurrency took a turn for the worst and kicked the proverbial bucket. Nvidia expects this to deplete by, at the latest, April. But that’s not the only issue the green team’s facing. The drop off in demand from the Chinese market, or “deteriorating macroeconomic conditions” as Nvidia puts it, has also impacted the consumer demand for Nvidia’s GPUs. Data centre demand also stifled as customers became “cautious” of the market, yet Nvidia remains confident that it still has the leading edge when it comes to AI and HPC applications.

Source : https://www.pcgamesn.com/nvidia/nvidia-turing-gpu-price-share-outlook

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