A NVIDIA logo is shown at SIGGRAPH 2017 in Los Angeles, California, U.S. July 31, 2017. REUTERS/Mike Blake/File Photo
(Reuters) – Nvidia Corp on Monday cut its fourth-quarter revenue estimate by half a billion dollars due to weak demand for its gaming chips in China and lower-than-expected detacenter sales, sending its shares sliding 13 percent.
“Q4 was an extraordinary, unusually turbulent, and disappointing quarter,” said Chief Executive Officer Jensen Huang said.
A raft of earnings, analyst notes and market commentary in recent weeks have confirmed that a slowdown in the world’s No.2 economy, exacerbated by an ongoing trade war with the United States, will continue to squeeze sales and profits at technology companies.
The company forecast revenue of $2.20 billion for the quarter ended Jan. 27, down from its earlier forecast of $2.70 billion. Both numbers were plus or minus 2 percent.
Analysts on average had forecast revenue of $2.7 billion, according to Refinitiv data from IBES.
Nvidia said sales of its next generation “Turing” graphic chips were also below expectations as some customers delayed their purchases.
The company will report its fourth quarter results on Feb. 14.
Reporting by Sonam Rai and Munsif Vengattil in Bengaluru; Editing by Saumyadeb Chakrabarty