Back in November, Nvidia reported lower than expected earnings due to the crypto mining market drying up and an over supply of leftover Pascal GPUs. Now a couple of months later, the situation hasn’t improved much, with Nvidia today readjusting its expected Q4 earnings and admitting that Turing sales are lower than expected.
In a press release issued today, Nvidia updated its financial guidance for Q4 in the 2019 financial year. Nvidia states that it has had “weaker than forecasted sales” in the gaming and datacenter markets. While the hit from excess Pascal inventory fell “largely inline with management’s expectations”, the sales of “certain high-end GPUs using Nvidia’s new Turing architecture were lower than expected”.
High-end Turing/RTX graphics cards aren’t flying off the shelves as swiftly as past generations. Nvidia thinks that “some customers may have delayed their purchase while waiting for lower price points and further demonstrations of RTX technology in actual games”. I’m inclined to agree with Nvidia on both counts there, as prices are spectacularly high this time around and we still have very few games supporting ray-tracing or DLSS- Shadow of the Tomb Raider owners are still waiting on an ETA for the RTX update and Battlefield V has yet to have DLSS patched in.
On the datacenter front, Nvidia says that “a number of deals in the company’s forecast did not close in the last month” of Q4, which also had an impact on projected revenue for the quarter. Right now, Nvidia, has reduced its Q4 earnings guidance from $2.7 billion to $2.2 billion. Nvidia stock has dipped by around 15 percent following the announcement.
KitGuru Says: Nvidia has taken some hits over the last couple of quarters. We don’t know if this will result in price drops or sales for Turing GPUs any time soon, but perhaps increased competition from AMD’s upcoming Radeon VII GPU will spur things along. Were any of you considering an RTX GPU upgrade this year? Are you waiting for pricing to come down first, or would you be happy to fork out the full price is more RTX titles were readily available?