NVidia Corp has released a warning that its fourth-quarter (Q4) revenue will fall short of expectations due to lower demand in its data centre and gaming business, according to a press release by NVidia on Monday (Jan. 28th).
The company said “weaker than forecasted sales of its Gaming and Data Centre Platforms”, and the “deteriorating macroeconomic conditions, particularly in China” played an important role.
The company said it now expects to report only $2.2bn (£1.6bn) for its fiscal 2019 fourth quarter, which was down from the previous projection of $2.70bn (£2.04bn).
NVidia said the management of excess mid-range inventory following the crypto-currency went in line with management expectations, but the sales of certain “high-end GPUs using NVidia’s new Turing architecture were lower than expected.”
The company said consumers were waiting for cheaper GPUs, which have still not arrived, and some customers may have delayed their purchase while waiting for lower price points and further demonstrations of RTX technology in actual games.
“Extraordinary, unusually turbulent, and disappointing quarter”
As for Data centre platforms, the company said it did not close deals in the last month as customers became more cautious.
NVidia added that it was upbeat about AI and high-performance computing workloads.
NVidia said it expects its GAAP and non-GAAP gross margin to be hit by approximately $120m (£91m) losses due to excess “DRAM and other components associated with the updated revenue and current market conditions”.
NVidia plans to disclose quarterly results in mid-February.
Following Monday’s decline, the company’s shares dropped by more than 53% since early October of last year.