Nvidia stock tumbles

[Razor Time]

Nvidia stock tumbles after company says fourth-quarter results will fall far short of estimates

Shares of Nvidia Corp. NVDA, -13.86% are down more than 14% in premarket trading Monday after the company said it expects to report $2.2 billion in fiscal fourth-quarter revenue, below its previous outlook of $2.7 billion. Analysts surveyed by FactSet had been expecting $2.7 billion as well for the January-ended quarter. Nvidia said that its gaming and data-center revenue missed expectations. "Deteriorating macroeconomic conditions, particularly in China, impacted consumer demand for NVIDIA gaming GPUs," the company said in a release. Nvidia also disclosed that sales of "certain high-end GPUs" that make use of its new Turing architecture were lower than the company expected. In the data-center business, the company wasn't able to close a number of large deals that it had initially forecasted as companies shifted toward "a more cautious approach." Nvidia Chief Executive Jensen Huang said that the fiscal fourth quarter was "an extraordinary, unusually turbulent, and disappointing." The company said it expected its GAAP and non-GAAP gross margins to be impacted by $120 million. Nvidia reports results on Feb. 14.

https://www.marketwatch.com/story/n...s-will-fall-far-short-of-estimates-2019-01-28


Gotta laugh that they had lower than expected sales on Turing after jacking the prices up as much as they did. Hopefully they will wake up and start reducing their over inflated prices.

 

[gary996]

They have been ripping people off for too long

 

[Wrinkly]

Never saw it coming

 

[vapor matt]

HA HA that's what NV tax does for you, too expensive and ray tracing is pants! could be why the 2080Ti came out so soon, trying to make the numbers forcast add up!

 

[scrivz69]

Lol, good news for a change.

 

[Kaapstad]

NVidia need to go back to selling what people want rather than what they think we should have.

Massive GPUs running features that offer limited benefits is not the way to go for the mass market.

NVidia please google Henry Ford.

 

[tbh]

I sold all my NVDA when it was at $270, really dodged a bullet there as it turns out.

https://www.marketwatch.com/story/t...ng-should-scare-investors-the-most-2019-01-28

“Sales of certain high-end GPUs using Nvidia’s new Turing architecture were lower than expected,” the company said in its news release. “These products deliver a revolutionary leap in performance and innovation with real-time ray tracing and AI, but some customers may have delayed their purchase while waiting for lower price points and further demonstrations of RTX technology in actual games.“

You mean buyers don't want to pay through the nose for features they can't use? I am Jack's complete lack of surprise.

 

[Rroff]

NVidia need to go back to selling what people want rather than what they think we should have.

Massive GPUs running features that offer limited benefits is not the way to go for the mass market.

NVidia please google Henry Ford.

nVidia really should have gone to town with some developers to push RTX features in both existing and older games before launching the technology - it would have been much better accepted if people could start playing games like Skyrim straight away with a decent graphics update - not just shiny graphics for shiny sake but an actual implementation with complex real time shadows and bounced light, etc. even if it wasn't a full resolution ray tracing engine you can still do incredible stuff - and a larger number of incoming games like The Division 2, etc. with support for the technology.

 

[Gerard]

Guess that what happens when you put out a £1100 gpu with a retro game bundle like space invaders.

 

[Dirk Diggler]

There's a thread on MM with a guy wanting to trade his 2080ti for a 1080ti with a block pre-installed + £600 his way.

That's how mental it's got.

 

[JediFragger]

There's a thread on MM with a guy wanting to trade his 2080ti for a 1080ti with a block pre-installed + £600 his way.

Yeah he's dreaming a fair bit, like his card hasn't taken a hit at all and pricing the 1080Ti v low.

 

[ICDP]

nVidia really should have gone to town with some developers to push RTX features in both existing and older games before launching the technology - it would have been much better accepted if people could start playing games like Skyrim straight away with a decent graphics update - not just shiny graphics for shiny sake but an actual implementation with complex real time shadows and bounced light, etc. even if it wasn't a full resolution ray tracing engine you can still do incredible stuff - and a larger number of incoming games like The Division 2, etc. with support for the technology.

Lol, I'm sorry but if Nvidia had waited for RTX and DLSS featured games to be ready like you suggest, RTX 20x0 GPUs would still be a long way from release. 4 months later and only one game is released with ray tracing and the majority of tech sites are calling it pretty much worthless. It's kind of a running joke on most tech sites.

Not to mention they suddenly decided to allow consumers to allow Freesync on their GPUs. Years of charging G-Sync tax and locking out people with Freesync monitors and suddenly they have a change of heart and are looking out for the consumers? Sorry Nvidia, anyone with a titter of wit can see it is a move from a company who realised it lost the A-Sync war and needed to broaden it's consumer base due to poor sales of RTX GPUs.

Nvidia arrogantly believed their own marketing hype and thought they could convince consumer to purchase RTX 20x0 in bucket loads at extortionate prices all based on a promise of "possible future potential". I think we have just witnessed peak Nvidia, enough consumers finally voted with their wallets and gave the finger to Nvidia.

Having said all that, ironically I just bought myself a used RTX 2080 for a very decent price.

 

[4K8KW10]

NVidia need to go back to selling what people want rather than what they think we should have.

Massive GPUs running features that offer limited benefits is not the way to go for the mass market.

It is not, but nvidia's problem is obviously the lack of an economically justified smaller node. This RTX should have been tried at 5nm/3nm first, and not as early as 16nm+...
You see they are sevely delaying a potential jump to 7nm Samsung. Not even TSMC that is ready.

 

[SupraWez]

Ouch, that is quite a drop

 

[4K8KW10]

Ouch, that is quite a drop

Yes, the balloon has exploded and the stock is back to sane levels, where it should have stayed all the time

 

[faceman123]

Fine wine, is the share price linked to AMD driver improvement percentages by any chance

 

[Finners]

Whilst I'm glad Nvidia are paying for their pricing strategy they don't seem to be alone in dropping value today.

AMD has dropped a lot to, is it an industry wide thing or has AMD had bad news today as well?

 

[opethdisciple]

No ones posted this yet?

I don't think prices will fall as much as we think if a shortage is round the corner.

 

[4K8KW10]

Whilst I'm glad Nvidia are paying for their pricing strategy they don't seem to be alone in dropping value today.

AMD has dropped a lot to, is it an industry wide thing or has AMD had bad news today as well?

AMD's news tomorrow. Might be a usual correction pre-earnings date.

No ones posted this yet?

I don't think prices will fall as much as we think if a shortage is round the corner.

Yes:

AMD currently uses TSMC at the 7nm node for its upcoming Ryzen and Navi GPUs

 

[Gerard]

No ones posted this yet?

I don't think prices will fall as much as we think if a shortage is round the corner.

Depends on what gpu it affects, doesn't go into much detail, on that front.