Share prices in GPU manufacturer Nvidia fell up to 19 per cent after the company failed to meet Q3 targets.
GamesIndustry reports that while Nvidia expected to earn $3.24 billion in net revenue during the quarter, the company ended the period with actual revenue of only $3.18 billion. As of last Friday, Nvidia stock fell 19 per cent
Despite the drop, revenue for the quarter increased 21 per cent year-over-year. Gaming revenues hit $1.764 billion, a 13 per cent yearly increase but 2 per cent down on Q2 2018.
"Our near-term results reflect excess channel inventory post the cryptocurrency boom, which will be corrected," said Nvidia CEO Jensen Huang in a statement reported on by VentureBeat.
"Our market position and growth opportunities are stronger than ever. During the quarter, we launched new platforms to extend our architecture into new growth markets - Rapids for machine learning, RTX Server for film rendering, and the T4 Cloud GPU for hyperscale and cloud."
Speaking of cryptocurrency, Nvidia now firmly believes the craze is over as far as its financials are concerned and will be “immaterial” to GPU revenue for the rest of the year.
The manufacturer has announced Q4 estimates of $2.7 billion - significantly below analyst estimates of $3.4 billion, reports CNBC. The outlet reported that even Nvidia’s $3.24 billion expectation for Q3 was below what analysts expected, leading to a 6 per cent drop in stock three months ago.