US graphics card maker Nvidia’s share price plunged in after-hours trading on Thursday because earnings outlook for the second quarter was lower than expected.
Quarterly growth from the fourth quarter of 2021 to the first quarter of 2022 has been strong, with sales up 8% to $ 8.98 billion and earnings per share up 3% to $ 1.36.AlsoDocuments to be submitted to the US Securities and Exchange Commission (SEC)The $ 15 billion share buyback program will continue until the end of 2023, according to the company.
However, the outlook for the second quarter has deteriorated significantly, with sales of $ 8.1 billion, 4% below expectations.
Following this disappointing figure, Nvidia (NVDA)’s share price fell 7% to $ 157.8 in after-hours trading. NVDA has fallen nearly 50% since the beginning of the year, reflecting the slump in tech stocks across the market.
According to Nvidia, the company’s cryptocurrency mining processor (CMP) sales were “minor” when subtracted from $ 155 million a year ago in the first quarter. Sales are not specified, but sales have “decreased” from the previous year.
Nvidia’s CMP revenue in the second quarter of 2021 was $ 266 million, but then in the third quarterWill be $ 105 million, Was $ 24 million in the fourth quarter. That CMP revenue still seems to be declining.
Nvidia down 10% after earnings, revenue forecast misses estimates pic.twitter.com/2EcnFPDWlR
— db (@tier10k) May 25, 2022
Nvidia has lowered its second-quarter earnings forecast to $ 8.1 billion “plus or minus 2%” due to “Russia and China locked down by COVID.” These two factors alone could reduce revenue by as much as $ 500 million, as the report states.
Nvidia’s CMP can be used to mine Bitcoin (BTC), Ethereum (ETH), and various other cryptocurrencies. The company’s graphics cards designed for games can also be used for cryptocurrency mining, unless restricted.
Risk Disclosure: The articles and articles on Arover.net do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies.
