Technology sector

Nvidia’s crisis, a red flag for the tech sector

(MENAFN- Baystreet.ca) Nvidia’s collapse is a red flag for the tech sector

Over the past two years, a confluence of events has over-stimulated demand for Nvidia (NVDA) graphics cards.
Due to the pandemic, containment measures have forced people to buy a gaming PC.

The Bitcoin and Ethereum gold rush has also fueled Nvidia’s GPU demand for crypto mining between
2020 and 2021.

The GPU giant, which is growing its data center business and metaverse core computing solution, lost
~10% on August 26, 2022. NVDA stock fell in sympathy with the sell-off after posting weak results.

Last quarter, Nvidia earned just 51 cents per share. Of the $6.7 billion in quarterly revenue, the data
center contributed $3.81 billion. However, gaming revenue fell 33% year-on-year to $2.04 billion.

Next Quarter Nvidia’s Revenue of $5.9 Billion Won’t Come Close to $6.92 Billion
consensus. CEO Jensen Huang said PC and channel partners will reduce inventory. The industry offer is
above demand. Additionally, the glut of 30xx RTX GPUs will hurt Nvidia’s 4000-series launch.

Nvidia will have to lower its prices to stimulate demand. When it comes out a more affordable, better-
running RTX 4090 and 4090 Ti, high-end gamers will buy it.

Avoid NVDA actions. Business growth slows down.

MENAFN30082022000212011056ID1104782648


Legal disclaimer: MENAFN provides the information “as is” without warranty of any kind. We assume no responsibility for the accuracy, content, images, videos, licensing, completeness, legality or reliability of any information in this article. If you have any complaints or copyright issues related to this article, please contact the provider above.