Nvidia stock

Graphics-chip maker Nvidia slashed its outlook for its fiscal second quarter on weak gaming chip sales. Nvidia stock tumbled on the news.

The best growth stocks have a Composite Rating of 90 or better. Nvidia stock tumbled on the news. FBN Securities reiterated its outperform rating but trimmed its price target to 225 from 250. "Our gaming product sell-through projections declined significantly as the quarter progressed," Chief Executive Jensen Huang said in the release. Gaming revenue was $2.04 billion, down 33% from the prior year. The Santa Clara, Calif.-based company announced preliminary sales of $6.7 billion for its quarter ended July 31.

Shares of Nvidia (NVDA -8.14%) tumbled on Monday, falling as much as 8.6%. As of 10:29 a.m. ET, the stock was still down 5.1%. The catalyst that sent the ...

As a result of its economic outlook, Nvidia expects to take a charge of roughly $1.32 billion in the second quarter, "primarily for inventory and related reserves, based on revised expectations of future demand." While this quarter's preliminary performance is certainly disappointing for investors, it's important to put this in the context of the massive long-term opportunity. To counter these challenges, Nvidia "implemented pricing programs" (read: cut prices), and noted that these challenging market conditions are expected to persist into the third quarter. Management noted that while the data center segment still generated record revenue, it was somewhat lower than the company's lofty expectations. Gaming revenue is expected to be $2.04 billion, down 33% year over year and 44% sequentially. For the 2023 fiscal second quarter (ended July 31) Nvidia is now expecting revenue of roughly $6.7 billion, up 3% year over year and down 19% sequentially.

The price of NVIDIA stock is dropping by more than 8% after the company warned that its results for Q2 2023 will fall short of its initial estimates.

The company cited that its gaming segment did not perform as expected due to “lower sell-in of Gaming products reflecting a reduction in channel partner sales likely due to macroeconomic headwinds”. The other bump in the road comes from lockdowns in China which has caused well-documented issues across the globe. Back then, the British investment firm stated: “The gaming boom of recent times is serving NVIDIA well – although the rate of growth is slowing. This would result in a 73.2% decline in the firm’s operating performance. However, the firm does not plan to pause its stock buybacks as its cash-flow generation capacity reportedly remains “strong”. The company will be taking several measures to deal with this challenging macro backdrop so its bottom-line performance is not dramatically affected.

Shares of Nvidia Corp. were tumbling 7% in premarket trading Monday after the semiconductor company disclosed that it expects to fall well short of revenue.

Nvidia expects to report $2.04 billion in gaming revenue, down 44% sequentially and off 33% from a year before, and below the FactSet consensus of $3.04 billion. “Our gaming product sell-through projections declined significantly as the quarter progressed,” Chief Executive Jensen Huang said in a release. “In addition to reducing sell-in, the company implemented pricing programs with channel partners to reflect challenging market conditions that are expected to persist into the third quarter.” “Now I see more questions vs. Nvidia’s NVDA previous forecast had also been for $8.1 billion. “I would have said this cut [was] more good vs. The Monday announcement came weeks ahead of Nvidia’s scheduled earnings-report date... Nvidia’s NVDA previous forecast had also been for $8.1 billion. The Monday announcement came weeks ahead of Nvidia’s scheduled earnings-report date of Aug. 24. The company expects fiscal second-quarter revenue of $6.7 billion, up from $6.5 billion a year before, whereas analysts were expecting $8.1 billion. The company expects fiscal second-quarter revenue of $6.7 billion, up from $6.5 billion a year before, whereas analysts were expecting $8.1 billion. Shares of Nvidia Corp. were tumbling more than 5% in morning trading Monday after the semiconductor company disclosed that it expects to fall well short of revenue expectations for its latest quarter, largely due to gaming weakness.