Graphics chipmaker NVIDIA saw its stock tank this morning as much as 17% after announcing a Q4 2019 earnings revision, citing China as the prime culprit.
CEO Jensen Huang said in a statement that the company is “confident in our strategies” however, “deteriorating macroeconomic conditions, particularly in China”, are the main cause for today’s guidance.
NVIDIA is scheduled to announce quarterly earnings on February 14, though the company now only expects to generate revenues of approximately 2.20 billion, a steep drop from the previously estimated $2.70 billion.
Huang in a statement,
Q4 was an extraordinary, unusually turbulent, and disappointing quarter. Looking forward, we are confident in our strategies and growth drivers. The foundation of our business is strong and more evident than ever.
As of late, troublesome economic conditions in China bearing the stress of an ongoing trade war with the United States have weighed down on companies. Of course, it’s been no secret Apple is casualty number one from the effects of the trade battle.
However, it wouldn’t be fair to paint the Cupertino giant as the sole victim, as a report from early January detailed how smartphone shipments are simply down generally in China by as much as 15%, demonstrating this is beyond a mere Apple problem.
Yesterday, we reported on how Apple manufacturer Pegatron was seeking to expand production capacity outside of China’s mainland to India, Indonesia and Vietnam.
As per the GPU chipmaker, NVIDIA has launched some seriously impressive products recently, though they’ve been less than friendly with Apple. We previously asked our readers if you’d be interested in Mac taking a switch back to NVIDIA over the currently featured AMD chips. Less than 6% of our readers felt Apple should stick with AMD — perhaps a bit telling of the performance difference found between the two manufactures best GPUs…
The entirety of the earnings revision follows:
- Pegatron planning expansion outside of China as Apple looks to make flagship iPhones in India
- It’s not just Apple hurting in China: stats show smartphone shipments fell 12-15.5%
- Laughable report suggests most iPhones in China bought by the ‘invisible poor’
- NVIDIA’s new laptop-friendly RTX GPUs are beasts, but in-house Apple GPUs loom [Poll]
- How to: 2018 Mac mini + Nvidia GeForce RTX 2080 eGPU Windows gaming setup [Video]