Nvidia: demand for miners in Q4 was weak, as expected.

[Paha87]

On Monday, the developer of graphics processors and systems-on-chip Nvidia published disappointing news for investors, but this time the decline in demand for miners has not had a categorical impact.

In an updated guide released Monday, the video card manufacturer warned that it was now going to report revenue of only $ 2.2 billion for the fiscal quarter of 2019, which ends January 31, compared to a previous estimate of $ 2.7 billion.

"The earlier forecast already took into account the fall in demand for graphics processors (GPUs) used in the mining of crypto - currencies, - Nvidia reports, - and sales of additional graphics cards did not lag behind these expectations." CEO Jensen Huang wrote in a letter to the shareholders:

We expect that after the third quarter the inventory of channels will be mostly exhausted within one or two quarters or in the period from February to April. Our view on this remains unchanged today.

The problem lies in the fact that the economic problems and uncertainties, especially in China, reduce demand on the graphics processor among other clients Nvidia gamers and data centers. Juan wrote:

The fourth quarter was unusual - unusually turbulent and disappointing quarter.

Nvidia will present its full fourth quarter results on February 14.

The company has been warning about a" significant decrease " in revenues from sales to miners for some time.Nvidia expected to receive $ 100 million in profits from the demand of the cryptosphere during the second quarter of fiscal 2019, but saw only $ 18 million.

"If earlier we expected the cryptocurrency to make a difference for this year, now we do not plan to make any deposits in the future," said CFO Colette cress during a call last summer.

AMD's competitor also warned that the fall in demand for GPU from miners "materially" will affect the GPU-business of the company.

LINK - https://altstake.io/news/nvidiaspros-na-mayneryv-q4-okazalsya-slabym-kak-i-oghidalosy

[Danezu]

Well, I think the bullish cryptocurrency market affects them more than they want to admit. Maybe there are problems in the gaming and data centers sectors too, but mining has a bigger share in this decline.