Nvidia CEO: Coronavirus warning shaves $100 million from Q1 expectations

Jensen Huang, CEO of Nvidia, stated in an interview with VentureBeat that he shaved Nvidia’s expectations for graphics and AI chip income within the present quarter as a result of the coronavirus might have an effect on the corporate’s provide chain.

Citing the coronavirus outbreak in China, Huang stated the corporate is watching the scenario carefully. So the corporate shaved the income estimate for the primary quarter out of warning. However he additionally stated the impact is mitigated partially as a result of plenty of Nvidia’s manufacturing (by way of contractors) is predicated in Taiwan.

However a 3rd of Nvidia’s gaming enterprise is in China, and the lockdown on the nation’s residents means they aren’t going to be doing plenty of procuring, he stated. However it might additionally imply that individuals will keep at dwelling and play extra video games.

Due to the coronavirus, Nvidia and different firms pulled out of Cellular World Congress, the large cell tech commerce present in Barcelona, Spain, and because of that, the organizers of MWC determined to drag the plug on the present.

For the fourth-fiscal quarter ended January 26, Nvidia reported that it beat earnings expectations, with earnings per share greater than doubling from a 12 months in the past and income rising 41% to $311 milllion.

Huang stated that he was pleased that Nvidia was working with Tencent on a cloud gaming service, however he stated the transition to the cloud will likely be a long-term journey in gaming. The GeForce Now cloud gaming service has launched within the West with an open platform, with a number of hundred video games out there.

Huang stated that Nvidia’s GeForce RTX graphics playing cards have now hit the candy spot, with playing cards priced at $299. Huang stated he’s assured that PC gaming and RTX graphics, which have real-time ray tracing, will turn out to be extra well-liked because the next-generation recreation consoles arrive this fall. These consoles could have real-time ray tracing, and they’ll elevate the bar for graphics, Huang stated.

In the meantime, he stated AI is the “major development driver” for Nvidia, with document gross sales of datacenter graphics processing items (GPUs).

Leave a Reply

Your email address will not be published. Required fields are marked *