On Monday, Nvidia took the unusual step by suggesting a revised financial estimate for the fourth quarter of 2019 before the planned disclosure on February 14th. still too high.
The initial forecast for quarterly revenue of $ 2.7 billion has since dropped to $ 2.2 billion, a change of about 19 percent. Several new data factors in this revision. According to Nvidia, the biggest problem faced by consumers is "lower-than-expected" sales of their RTX line of new graphics cards. This series, packed with patented technologies such as a special flash processor, began in September 2018 with $ 1,199 RTX 2080 Ti and $ 799 RTX 2080.
"These products provide a revolutionary leap in productivity and real-time innovation and AI, but some customers may have slowed down their purchases while waiting for lower prices and further demonstrations of RTX technology in real-time gaming," a statement said. Nvidia. Since the time of the press only one retail game, Battlefield V, was included in the RTX system for radiation only.
Nvidia's work on server-side and data center technologies also appears to be a factor in the revised rating. In a letter to shareholders, Nvidia Chief Executive Jensen Huang pointed out "economic uncertainty" and "a number of deals" [that] did not close in the last month of the quarter "as driving factors for declining industry ratings, which he acknowledges is now unpredictable by default." Juan quoted a "sharp slowdown" in the global economy, especially in China.
These traps came in addition to a factor that Nvidia has already recognized as a driving force to reduce revenue: diving in the search for crypto-roll and, consequently, drop in sales from impatient crypto-lurus. This "surplus of mid-channel inventory" is in line with Nvidia's expectations, the statement said.
Huang went so far as to call Q4 2019 "an unusual, unusually stormy and disappointing quarter", although he did so after listing a number of initiatives he believes will lead to revenue growth, including: the launch of the RTX 2060 graphics card; a new wave of RTX power laptops that combine the increasingly mobile products of the company with more RTX perks; and enhancing the functionality of data center products, including "deep knowledge extraction, data analysis, and machine learning" to satisfy more corporate customers who are hungry for AI.
This revision comes before the release of AMD from Radeon VII to the rival GPU, a 7nm-process graphics card that comes in stores on February 7 for $ 699.