Nvidia Shares Plummets After Cutting Revenue Forecast Amidst China Slowdown

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Nvidia Inc. has slashed its fourth-quarter revenue as it expects a slowdown in sales, especially in China. This has led the shares of the company to plummet by roughly 14 percent today.

Chinese economic slowdown continues to affect US companies

Nvidia, the chip-making giant, has slashed its Q4 revenue as it expects weaker sales of its gaming and data center platforms. This is due to the slowing global economy. The slowdown in the global economy, especially in China, has affected the growth of US companies over the past few months. A few hours ago, machine manufacturer Caterpillar reported that it experienced slow sales in the last quarter due to a drop in demand in China and Asia.

Nvidia, which is the largest manufacturer of chips for computer graphic cards stated that it is expected $2.2 billion in revenue for the fourth quarter which was previously set at $2.7 billion. This led to the shares plunging by 18 percent earlier today to trade at $131.01.

The company in its report stated that “Deteriorating macroeconomic conditions, particularly in China, impacted consumer demand for NVIDIA gaming GPUs.” Nvidia also expects the sales of its high-end graphics processing units to slip in the current quarter.

US giants such as Apple and others have been affected negatively by the economic slowdown in China. The IMF recently warned that the slowdown in the Chinese economy has also seen the global economy experience slower growth over the past few months.

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