Nvidia experienced far more disappointing information for investors Monday, but for at the time the cryptocurrency mining slump was not straight to blame.
In updated direction launched Monday, the graphics card manufacturer warned it now expects to report only $2.2 billion of earnings for its fiscal 2019 fourth quarter, which ends Jan. 31, down from a former estimate of $2.7 billion.
The before forecast experienced previously factored in a drop in demand for graphics processing models (GPUs) utilised in crypto mining, Nvidia reported, and revenue of the more graphics cards have retained speed with those expectations.
“Exiting Q3, we approximated channel stock would be largely depleted in a single to two quarters, or between February and April,” CEO Jensen Huang wrote in a letter to shareholders. “Our watch of that these days remains unchanged.”
The trouble is that financial woes and uncertainty, specifically in China, hurt demand for GPUs among the Nvidia’s other customers – gamers and information facilities.
“Q4 was an amazing, unusually turbulent, and disappointing quarter,” Huang wrote.
Nvidia will report its complete fourth-quarter final results on February 14.
The business has been warning of a “substantial decrease” in earnings from cryptocurrency miners for some time now.
Nvidia predicted bringing in $100 million throughout the 2nd quarter of fiscal 2019, but only noticed $18 million.
“Whereas we experienced formerly predicted cryptocurrency to be meaningful for the calendar year, we are now projecting no contributions likely ahead,” chief money officer Colette Kress reported throughout an earnings phone last summer time.
Its competitor, AMD, experienced also cautioned that a drop in demand for GPUs by miners would “materially” effects its GPU enterprise.
Nvidia impression via michelmond / Shutterstock