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The Exiled · 15.02.2019., 15:50

Citiraj:

nVidia Jumps on Sales Forecast Projecting Rebound in Demand

Citiraj:

nVidia’s run of consecutive revenue gains, stretching back to 2014, was broken in the reported quarter when sales of chips to cryptocurrency miners crashed as the digital-coin market plunged. The resulting excess inventory has been compounded by weaker demand from consumers and from operators of data centers, who had been increasingly using the chips for artificial intelligence computing. Chief Executive Officer Jensen Huang is trying to convince investors that the stall in the company’s revenue is a short-lived trend and that the broader use of graphics chips in everything from cars to data centers will restore growth that has doubled the size of his company since 2016.

Crypto crash leads to inventory pile-up at nVidia, sales slaughtered

Citiraj:

This was the first decline for nVidia for five years. The numbers were in line with warnings handed down by management a fortnight ago and so the share price was trading up almost 8 per cent. The same thing happened to Apple in January after it delivered a sales warning and then "met" that reforecast. The top line slide for the quarter was "driven primarily" by a 45 per cent drop in gaming revenue to $954m, "weaker than expectations heading into the quarter", said CFO Colette Kress on an earnings call with financial analysts.

nVidia Earnings Report Q4 2019: Crypto Pain But Full Year Gain

Citiraj:

As expected, revenues were sharply hit by the crash of the cryptocurrency markets, and the Santa Clara company faced a year-over-year revenue drop of $706 million, or 24%, with fourth-quarter revenues of $2.2 billion. Gross margin fell to 54.7%, down 7.2% from Q4 2018. Operating income was down a dramatic 73% to $294 million, although net income was only down 49%, coming in at $567 million. This resulted in diluted earnings-per-share of $0.92, down 48% from a year ago. nVidia’s growth thanks to Cryptocurrency was mostly found in their gaming GPU lineup sales, so unsurprisingly the GPU business saw the biggest revenue drop of any segment. Year-over-year, nVidia’s GPU business fell 20%, and compared to the previous quarter, it’s down 29%. Breaking the units down into markets, Gaming continues to be the biggest segment of nVidia, although not by the wide margin we are accustomed to. Gaming brought in $954 million in revenue, down 45% from a year ago where Gaming was $1.7 billion in revenue.