On Monday, Nvidia’s CEO, Jensen Huang announced that the fourth quarter “was a real punch in the gut”. He explained the sales of the newly released Turning GPUs was lower than expected, which drastically affected the company’s revenue.
Nvidia projected a revenue of $2.7 billion, but it now expects to attain $2.2 billion. According to the company, the poor sales were attributed due to the declining macroeconomic conditions especially in China, which led to a drop in the demand for GPUs designed for gaming.
While the decline in sales was expected due to the cryptocurrency crash, since that contributed to the majority of GPU sales. The sudden crash left Nvidia with a huge inventory of Pascal Cards.
To mitigate the declining sales, Nvidia launched the Turing lineup of GPUs with ray tracing and DLSS support.
However, the RTX was received pretty poorly by the consumers due to various reasons including pricing ones:
“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,” Nvidia said.
Nevertheless, while “Q4 was an extraordinary, unusually turbulent, and disappointing quarter,” Nvidia is confident in the foundation of its business, which it said is “strong and more evident than ever.”
“[Nvidia] is resilient, creative, and repeatedly rises to great challenges. We will shake this off and come back strong,” Jensen