SANTA CLARA (dpa-AFX) – The US chip group NVIDIA does not expect a speedy recovery after missing sales expectations. For the current quarter, the company, based in Santa Clara, California, forecast sales of around 5.9 billion dollars (around 5.9 billion euros) on Wednesday. That would be over a billion dollars less than in the same quarter last year – and significantly less than analysts had expected.
Sales in the second quarter, which ended in July, were in line with the preliminary figures presented – an increase of three percent to $6.7 billion. Nvidia itself had expected more than eight billion dollars. The trigger was a gaming business that was even weaker than expected.
Nvidia’s graphics cards are not only used in PCs, whose sales are currently weakening, but also for the production of cryptocurrencies, which have become less lucrative as prices have fallen.
Gaming revenue of $2.04 billion fell a third year over year as announced. In the data center business, on the other hand, sales rose to 3.81 billion dollars – an increase of 61 percent.
Bottom line, quarterly profit fell to $656 million from a good $2.37 billion a year earlier. Investors temporarily let the share fall by around four percent in after-hours trading./so/DP/he
Leverage must be between 2 and 20
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