#NVDA EARNINGS DISAPPOINT UPDATE#
#NVDA EARNINGS DISAPPOINT PC#

The graphs below show that crude oil and the U.N. Rating via Crude and Food Prices in Freefall We own a 0.5% stake in NVDA that we will use this weakness to build into. We expect a diminishing contribution going forward.Ĭhanges to cryptocurrency standards and processes including, but not limited to, the pending Ethereum 2.0 standard may decrease the usage of GPUs for Ethereum mining as well as create increased aftermarket resales of our GPUs, impact retail prices for our GPUs, increase returns of our products in the distribution channel, and may reduce demand for our new GPUs.” – Nvidia CFO Colette Kress The reduced pace of increase in Ethereum network hash rate likely reflects lower mining activity on GPUs. ‌” The extent in which cryptocurrency mining contributed to Gaming demand is difficult for us to quantify with any reasonable degree of precision. As semiconductor expert Fabricated Knowledge wrote earlier this year, Ethereum’s pending network transition from proof-of-work to proof-of-stake - aka the Merge - is expected to slow processor usage as well.” – Yahoo Finance ‌ But Nvidia’s slowdown goes well beyond moderation in interest from gamers building their own rigs with the latest graphics chips. Morgan analyst Sandeep Deshpande wrote in a note on Monday. ‌ “Nvidia’s gaming slowdown likely includes the chips they sell to the crypto market, which has been weak, hence the extent of the slowdown is so significant,” J.P. The drop nearly mirrors what the company suffered back in 2018 amid a previous crypto winter. ‌‌ The specific challenge facing Nvidia is what the company expects will be a 44% quarter-over-quarter decline in revenue from its gaming segment, which includes sales of high-end graphic cards and other chips. “Crypto winter continues, and Nvidia (NVDA) is the latest company warning about the impacts to public markets. The Congressional Budget Office estimates that, over the next two years, the Inflation Reduction Act is likely to change the inflation rate by less than one tenth of one percent - but it isn’t sure whether the change would be up or down. If a staunch supporter of the administration questions the bill’s inflation narrative, how much traction will it get with the public? More interesting however, this article was on the front page of the Washington Post. We agree with the article’s primary sentiment that fiscally irresponsible government, as we have had for decades, bodes poorly for economic progress.

Why the ‘Inflation Reduction Act’ is no such thing, written by Steven Pearlstein points out how the new legislation will not reduce inflation as the bill’s name seems to claim. The Washington Post ran a front-page critique of the administration’s new anti-inflation bill. Whether or not we get to add exposure to portfolios will depend greatly on how the market behaves during that process. With the Fed continuing a more aggressive posture and earnings season coming to a close, we would not be surprised to see the recent rally cool. However, a support failure, as seen after the March rally, will lead to a retest of lows or worse. If the market can pull back to support, hold that level, and work of the overbought condition, a continuation of the bullish rally is likely. On a bullish note, breadth has improved markedly, and the 20-dma has crossed above the 50-dma, which now provides important support for any pullback. With the market very overbought short-term a consolidation, or a correction, is needed before the market can advance further. We saw similar action after the reflexive rally in late May and early June, leading to a failure of the rally and a retest of lows. Over the last few trading sessions, the market has started to consolidate below resistance, as shown yesterday.

#NVDA EARNINGS DISAPPOINT UPDATE#

ET: Unit Labor Costs, Q2 preliminary (9.5% expected, 12.6% prior)Įarnings Market Trading Update – The Market Begins To Consolidate ET: Nonfarm Productivity, Q2 preliminary (-4.6% expected, -7.3% prior) ET: NFIB Small Business Optimism, July (89.5 expected, 89.5 prior) Per the press release: “ The shortfall relative to the May revenue outlook of $8.10 billion was primarily attributable to lower sell-in of Gaming products reflecting a reduction in channel partner sales likely due to macroeconomic headwinds.” NVDA was down about 6% on the day but is still up almost 15% over the past month. The more important takeaway is that, like many other companies, NVDA blames weaker economic growth for its forecast downgrades and financial shortfalls. NVDA expects gaming revenue to be 33% lower than last year. NVDA, in a surprise pre-earnings announcement, is slashing its guidance primarily due to poor gaming product sales.

#NVDA EARNINGS DISAPPOINT PC#

As we noted last week, AMD and INTC lowered their earnings/sales forecasts due to expected weak PC sales. NVIDIA (NVDA) and other chip makers are warning that chip sales are falling below expectations.

Nvda earnings disappoint