Nvidia has issued more bad news to its investors with a dire outlook for the current quarter, coming off the back of a July quarter that saw its gaming business slashed by one-third.
The company is expecting sales of about A$8.5 billion for the current quarter, a 17 per cent drop year-on-year, and well below the A$12.15 billion Wall Street was predicting before Nvidia issued a sales warning two weeks ago.
About a third of Nvidia’s sales come from gamers who gravitate towards its high-powered graphics cards. Its sales in this segment has dropped by a third, a huge sign that the gaming industry as a whole is about to suffer a dire period, as spending slows amidst inflationary pressures.
“We are navigating our supply chain transitions in a challenging macro environment,” Chief Executive Jensen Huang said in a statement.
Two weeks ago, Huang cautioned that “gaming product sell-through projections declined significantly as the quarter progressed.”
“As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory.
“NVIDIA has excellent products and position driving large and growing markets. As we navigate these challenges, we remain focused on the once-in-a-generation opportunity to reinvent computing for the era of AI.”
