Nvidia lowered its Q4 revenue guidance just before the stock market opened on Monday (January 28), CNBC reports. The statement mentions "weaker than forecasted sales of its Gaming and Datacenter platforms," and the company suggests that "deteriorating economic conditioning in China" played a role. As of this writing, shares had dropped almost 15 percent after the market opened.
The company has lowered its guidance to a quarterly revenue of $2.2 billion from $2.7 billion. Nvidia's earnings call, which will discuss 2019 financial results and Q1 2020 guidance is on February 14.
"Q4 was an extraordinary, unusually turbulent and disappointing quarter," Nvidia CEO and founder Jensen Huang, said in a statement. "Looking forward, we are confident in our strategies and growth drivers."
You can read the full statement on Nvidia's website.
The company suggested that management of the excess inventory due to the cryptocurrency boom went as expected, but that sales of "certain high-end GPUs using Nvidia's new Turing architecture" didn't meet expectations because some customers are "waiting for lower price points and further demonstrations of RTX technology in actual games."
On the datacenter side, the company said it had deals that did not close in the last month because customers were being cautious.
Nvidia is not the only tech company to have recently revised its guidance. Apple made a cut for its fiscal 2019 Q1 revenue on January 2, partially due to lower than expected iPhone sales.