Nvidia has just released its figures for Q4 FY 2019 and its revenue of $2.21 billion has beaten analyst expectations. Experts were expecting Nvidia to take a hit due to the decline in cryptocurrency mining and hence, fewer sales of GPU hardware units.
Previously, Nvidia had projected revenue of $2.71 billion for this quarter but due to the above-stated market conditions, it was forced to revise its estimations down to $2.20 billion.
While Nvidia may have somewhat saved its revenue projections, the RTX 2070 and 2080 failed to impress the majority as the company reported a staggering 46% year-on-year loss in its gaming division.
While the launch of 2060 was delayed on purpose because of the oversupply of GTX 1060 in the market, Nvidia executives admit that this was the primary reason their revenues in this particular segment have fallen.
Given below are Nvidia's financials:
Overall, Nvidia has experienced a reduction in revenue in almost every segment it deals with. This is not a minor 5% loss however, each segment has experienced a downfall of more than 10% in almost every category bar a few exceptions.
Nvidia is being continuously threatened by the impending arrival of AMD's 7nm GPUs. Add to that, the GTX 1060 and 1050 are still hugely popular amongst the masses due to their price-to-performance ratio. According to Steam stats, these two account for nearly 30% for all of the PCs using Steam. Hence Nvidia has its work cut out for itself if it wants to re-establish its foothold in the entry and mid-tier GPU markets.
Do you think Nvidia can bounce back in subsequent quarters? Or will this loss in revenue continue? Share your thoughts in the comments.