Nvidia has suffered yet another share value slump after revealing its updated financial guidance for the fourth quarter of the 2019 fiscal year. As expected, Nvidia has said it’s going to fail to hit its targets for this quarter and subsequently revised its guidance downwards, to the tune of half a billion dollars.
Team Green had originally published guidance figures of $2.7 billion revenue for the quarter but has now revised this down to $2.2 billion, slashing $500m off its targets. In the short term, the revised financial guidance this has hit Nvidia where it hurts, dropping their share value 13.82% overnight.
The excess supply of mid-range graphics card inventory following the cryptocurrency slump is cited as the chief region for this. Consumer demand has also taken a hit in China, while Nvidia also admits sales of its high-end GeForce RTX 20 series graphics cards with Turing GPUs were “lower than expected.” Ah, it turns out wallets aren’t as bottomless as previously thought. Amazingly, some consumers know enough to see when they’re being mugged off.
“Q4 was an extraordinary, unusually turbulent, and disappointing quarter,” CEO and founder Jensen Huang said.
“Looking forward, we are confident in our strategies and growth drivers. The foundation of our business is strong and more evident than ever – the accelerated computing model NVIDIA pioneered is the best path forward to serve the world’s insatiable computing needs. The markets we are creating – gaming, design, HPC, AI and autonomous vehicles – are important, growing and will be very large. We have excellent strategic positions in all of them."
The onus is now on Nvidia to clear out all of its lingering mid-range GPU stocks, including the likes of the GTX 1050 Ti and the GTX 1060, paving the way for newer models. More affordable GeForce graphics cards are an absolute must right now, particularly in terms of public sentiment. The rumoured GTX 16 series can’t just be cheap though, it needs to offer a notable performance jump over the previous gen. All the rumours are currently pointing toward a February 15th release date for the GeForce GTX 1660 Ti, so watch this space.