Nvidia Corp’s quarterly revenue missed its projections by more than US$1 billion, surprising investors and piling on more evidence that demand for electronic components is drying up quickly after a two-year boom.
Fiscal second-quarter revenue was about US$6.7 billion, down from its earlier projection of US$8.1 billion, the company said in a statement on Monday.
Shares of the most valuable publicly traded chipmaker fell 6.3 percent to US$177.93, their worst decline in nearly two months.
Nvidia’s report underscored a squeeze rippling across the industry: Declining consumer spending, growing inflation and a push to return to offices have reduced purchases of PCs. Intel Corp, Western Digital Corp and other companies that depend on PC sales have reported sharp declines in demand for their products.
Nvidia’s graphics chips are a staple of high-end PCs used to get the most realistic gaming experience. Most of the major gaming companies have reported falling sales or weaker outlooks this year, from PlayStation maker Sony Group Corp to Microsoft Corp, which sells the Xbox console. The add-in cards made by Nvidia also are a key part of systems used by currency miners, which make the company’s earnings vulnerable to fluctuations in those markets.
“Our gaming product sell-through projections declined significantly as the quarter progressed,” Nvidia CEO Jensen Huang (黃仁勳) said in the statement. “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 had already flagged strains on its performance in its second quarter, which ended on July 31. The Santa Clara, California-based company said in May that COVID-19 lockdowns in China disrupted production and transportation lines, making it harder to capitalize on demand for chips. Russia’s invasion of Ukraine also weighed on its outlook, and together the problems were expected to cut sales by about US$500 million in the fiscal second quarter, Nvidia said.
Gaming revenue in the fiscal second quarter fell 44 percent from the previous quarter and 33 percent from a year earlier to US$2.04 billion, Nvidia said.
While revenue from its data center business increased 61 percent to US$3.81 billion, it fell short of Nvidia’s projections, the company said.
Performance was “impacted by supply chain disruptions,” it said.
The quarterly results would also include about US$1.32 billion of charges, “primarily for inventory and related reserves, based on revised expectations of future demand,” Nvidia said.
“The significant charges incurred in the quarter reflect previous long-term purchase commitments we made during a time of severe component shortages and our current expectation of ongoing macroeconomic uncertainty,” chief financial officer Colette Kress said.
Nvidia is to give its full report and projections for the current period on Aug. 24.
Taiwan’s rapidly aging population is fueling a sharp increase in homes occupied solely by elderly people, a trend that is reshaping the nation’s housing market and social fabric, real-estate brokers said yesterday. About 850,000 residences were occupied by elderly people in the first quarter, including 655,000 that housed only one resident, the Ministry of the Interior said. The figures have nearly doubled from a decade earlier, Great Home Realty Co (大家房屋) said, as people aged 65 and older now make up 20.8 percent of the population. “The so-called silver tsunami represents more than just a demographic shift — it could fundamentally redefine the
Businesses across the global semiconductor supply chain are bracing themselves for disruptions from an escalating trade war, after China imposed curbs on rare earth mineral exports and the US responded with additional tariffs and restrictions on software sales to the Asian nation. China’s restrictions, the most targeted move yet to limit supplies of rare earth materials, represent the first major attempt by Beijing to exercise long-arm jurisdiction over foreign companies to target the semiconductor industry, threatening to stall the chips powering the artificial intelligence (AI) boom. They prompted US President Donald Trump on Friday to announce that he would impose an additional
China Airlines Ltd (CAL, 中華航空) said it expects peak season effects in the fourth quarter to continue to boost demand for passenger flights and cargo services, after reporting its second-highest-ever September sales on Monday. The carrier said it posted NT$15.88 billion (US$517 million) in consolidated sales last month, trailing only September last year’s NT$16.01 billion. Last month, CAL generated NT$8.77 billion from its passenger flights and NT$5.37 billion from cargo services, it said. In the first nine months of this year, the carrier posted NT$154.93 billion in cumulative sales, up 2.62 percent from a year earlier, marking the second-highest level for the January-September
Asian e-commerce giant Shein’s (希音) decision to set up shop in a historic Parisian department store has ruffled feathers in the fashion capital. Anger has been boiling since Shein announced last week that it would open its first permanent physical store next month at BHV Marais, an iconic building that has stood across from Paris City Hall since 1856. The move prompted some French brands to announce they would leave BHV Marais, but the department store had already been losing tenants over late payments. Aime cosmetics line cofounder Mathilde Lacombe, whose brand was among those that decided to leave following
RSS