On Monday, Nvidia took the unusual step of offering a revised Q4 201
The original quarterly revenue of $ 2.7 billion has since fallen to $ 2.2 billion, or 19 percent. Some new data points will be included in this revision. According to Nvidia, the biggest problem for the consumer is that the RTX range of new graphics cards is below expectations. This series of proprietary technologies, such as a dedicated raytracing processor, started in September 2018 with the $ 1.99 RTX 2080 Ti and the $ 799 RTX 2080.
"These products provide a revolutionary leap in AI with revolutionary real-time raytracing AI, but some customers may have delayed their purchases while waiting for actual price points and further demonstrations of RTX technology in current games, "Nvidia said in a statement. At the time of printing, only one retail game, Battlefield V had used the pure RTX raytracing system.
Nvidia's work on server-side and data center technologies also seems to interfere with the revised estimate. In a letter to shareholders, Nvidia CEO Jensen Huang pointed to "economic uncertainties" and "a series of transactions [that] was not closed in the last month of the quarter" as driving factors for reduced estimates in a sector he already admitted, by default unpredictable. Huang cited a "sharply slower" global economy, especially in China.
These pitfalls added to a factor that Nvidia had already identified as a driver of reduced revenue: a slump in demand for cryptocurrency, resulting in a decline in revenue for avid mountain farmers of the cryptocurrency. This "excessive asset inventory" was in line with Nvidia's expectations, the statement said.
Huang described Q4 2019 as "an extraordinary, unusually tumultuous and disappointing quarter," despite doing so after listing a series of initiatives he believes will boost revenues, including: the launch of the $ 349 RTX 2060 graphics card; a new wave of RTX-powered laptops that combine the company's increasingly mobile-friendly products with more RTX benefits; and enhanced functionality for its data center products, including deep learning inference, data analytics, and machine learning, to satisfy more AI-hungry enterprise customers.
This revision comes before the launch of Radeon VII, a competitor to AMD AMD A 7-nm process graphics card is coming to stores for $ 699 on February 7.