Despite the market headwinds however, Nvidia is confident its competition position is intact, boosted by opportunities in AI high performance computing. “Q4 was an extraordinary, unusually turbulent, and disappointing quarter,” said Jensen Huang, founder and CEO of NVIDIA. “Looking forward, we are confident in our strategies and growth drivers.
For Gaming, the original revenues guidance had included a sequential decline due to excess mid-range channel inventory following the crypto-currency boom. And even though the reduction of that inventory and its impact on the business have proceeded largely in-line with company expectations, deteriorating macroeconomic conditions, particularly in China, have impacted consumer demand for Nvidia gaming GPUs. Also, the sale of some high-end GPUs using NVIDIA’s new Turing architecture were lower than expected. Nvidia said some customers may be waiting for prices to go down before buying.
At Datacenter, revenues will also come under expectations, mainly because a number of expected deals did not close in the quarter as customers shifted to a more cautious approach.
The company will provide its financial results for the quarter on 14 February.
