On January 28, Nvidia informed investors of a decline in expected revenue for the fiscal quarter of 2019, as reported by CoinDesk.
The American company NVIDIA Corporation, which is developing graphics processors and SoC systems, has published a new guide for investors. The message stated that the expected profit for the financial quarter decreased from $ 2.7 billion to 2.2 billion.
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As you know, the 4th fiscal quarter of the company ends on January 31. Expected performance at the end of the quarter decreased by almost half a billion dollars. The company, already several times published messages about the decline in demand for Nvidia graphics processors (GPUs), but the expected damage has increased.
"(...) we expect that after the third quarter the inventory of the channels will be largely exhausted within one or two quarters or between February and April (...) Our opinion on this remains unchanged today (...) Q4 was an unusual, unusually turbulent and disappointing quarter" – CEO of Nvidia, Jensen Huang.
The problem is that economic instability and uncertainty in the crypto-market reduce the demand for graphics processors among Nvidia customers. As you know, the main customers of the manufacturer are gamers, data centers and miners.
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A message to investors reported that Nvidia will present the full results of the fourth quarter (Q4) only on February 14.
Recall that according to past statements, Nvidia expected to receive $ 100 million during the second quarter of the 2018 fiscal year. But in the end, it turned out only 18 million dollars. The main reason for the decline in the company's profitability is negative events in the cryptocurrency market.
"If earlier we expected that the cryptocurrency would be important for this year, then at the present time we do not plan to make any contributions in the future." – Financial Director of Nvidia, Colette Kress.
Nvidia manufacturer reported a decrease in profits in the fourth quarter. AMD competitive company also warned its investors about the fall in demand for GPUs.
Editor: Yulia Krasnaya