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, down almost £400 million.
Nvidia had originally published guidance figures of £2 billion revenue for the quarter but has now revised this down to £1.6 billion, slashing £400m 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.” With Ray Tracing not that powerful in its early form given the new technology the price is simply not worth the performance for many consumers and the general consensus is that the price in its current state is a rip-off.
“Q4 was an extraordinary, unusually turbulent, and disappointing quarter,” CEO and founder Jensen Huang said. Huang also mentioned that he is looking forward to the future and is very hopeful. With RTX technology moving forward all the time, sales may definitely swing back to be more positive.
Nvidia now need to clear its mid-range stock 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.