Live News: Nvidia Blames China’s Blockages, Russia’s War For Lower Revenue Prospects
Nvidia said it would miss about $500 million in revenue in the current quarter due to coronavirus lockdowns in China and the war in Ukraine, contributing to a weaker outlook for the chipmaker than analysts had not anticipated.
The company said it expects to report revenue of $8.1 billion, “plus or minus 2%,” in the second quarter due to these issues in China and Russia. That’s less than the $8.45 billion forecast by analysts, according to a Refinitiv survey.
Nvidia also revealed that cryptocurrency mining revenue evaporated in its first quarter. He said the cryptocurrency mining processor’s revenue was “nominal” in the first quarter, compared to a year earlier. A sell-off in often volatile cryptocurrency markets has accelerated in recent weeks, alongside a week-long decline in global stocks.
That said, the cryptocurrency mining processor segment represents a small portion of the $8.3 billion in total revenue Nvidia reported in its first quarter ended May 1, which beat Wall Street’s forecast of $8.2 billion.
Nvidia’s adjusted gross margin of 67.1% slightly beat Wall Street expectations, but net profit of $1.68 billion was below analysts’ expectations of $1.77 billion.
The shares fell 7.4% in after-hours trading on Wednesday, but were down as much as 9.3%.
Nvidia has been caught up in a broader stock market selloff that has hit high-flying tech companies. Its shares are down more than 42% so far in 2022, compared with a 16.5% drop for the S&P 500 over the same period and a 27% drop for the tech-focused Nasdaq Composite.