Nvidia Plunges on Q2 Revenue Warning
Aug 9, 2022 By MarketDepth
Nvidia (NVDA:NYQ) fell after the chipmaker released a warning to investors after lowering second-quarter fiscal 2023 revenue. With a surge in demand over the last few years, the news comes as President Biden signs the chip bill and softening demand for chips.
Nvidia shares are down almost 10% in the last two days as investors await financial results. This caused turmoil within the chip industry, dragging other companies lower.
As chip sales wane, Nvidia lowered its revenue guidance to $6.7 billion in the second quarter from $8.10 billion. The most significant revenue loss for the company has been in the gaming-chip sector, with sales down 33%.
The company notes “macroeconomic headwinds” and have instituted “pricing programs” to help alleviate the pressure in the sector. They continue to see challenging economic conditions into the third quarter.
