Nvidia’s revenue forecasts are insufficient. The stock is falling.

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Nvidia stock was down more than 40% this year as of Tuesday’s close.

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Nvidia

provided a revenue forecast for the October quarter below expectations, citing a difficult macroeconomic environment and a rapid decline in demand. Its shares fell in after-hours trading.

The semiconductor company reported adjusted earnings per share of 51 cents for the July quarter, versus a consensus estimate of 50 cents among analysts tracked by

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.

Revenue was $6.7 billion, matching both a negative pre-announcement

Nvidia

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) had released earlier and analysts recently lowered expectations.

The big news was the outlook. For the current quarter, Nvidia said revenue would be in range with a midpoint of $5.9 billion, well below the consensus call of $6.9 billion.

“We are navigating our supply chain transitions in a challenging macro environment and we will get through it,” Jensen Huang, Founder and CEO of Nvidia, said in the statement.

Nvidia shares fell 4.7% after the report.

Earlier this month, Nvidia announced disappointing results for its fiscal second quarter. At the time, he blamed weaker-than-expected gaming segment sales.

In a conference call to discuss the results, management said Nvidia saw a “sudden slowdown” in demand. Prices and the number of units sold deteriorated in the quarter, an executive said. Nvidia was “unable to quantify” to what extent the reduction in cryptocurrency mining caused the decline in gaming card sales.

Some analysts worry that demand for Nvidia’s graphics cards will remain weak due to its exposure to cryptocurrency mining, high prices for its high-end cards and the negative effects of a deteriorating global economy.

Nvidia stock was down 41% this year as of Wednesday’s close, against the 27% drop in the iShares Semiconductor (SOXX) ETF, which tracks the performance of the ICE Semiconductor index.

Email Tae Kim at [email protected]