Nvidia collapses as second-quarter forecast misses Russia and China expectations (NASDAQ:NVDA)

Nvidia (NASDAQ:NVDA) stocks fell sharply during extended trading on Wednesday after the chipmaker reported strong first quarter results but provided weak guidance for the quarter ahead.

However, the Santa Clara, California-based company said it expects second-quarter revenue to reach $8.1 billion, well below $8.44 billion. analysts had expected. Nvidia (NVDA) attributed the deficit to a drop of about $500 million due to the Russian invasion of Ukraine and Covid-related lockdowns in China.

Nvidia (NVDA) Shares fell more than 9% to $154.02 on the back of the results. Competitor Advanced Micro Devices (AMD) followed, down more than 2.5% to $90.09 after the report.

In addition, Nvidia (NVDA) said it expects GAAP and non-GAAP gross margins to be 65.1% and 67.1%, respectively, plus or minus 50 basis points.

Operating expenses are expected to be $2.46 billion on a GAAP basis and $1.75 billion on a non-GAAP basis.

For the period ending May 1, Jensen Huang-led Nvidia (NVDA) said it earned $1.36 per share on revenue of $8.29 billion, up 46% year over year, thanks to “record data center revenues.” and gaming”.

A consensus of Wall Street analysts expected Nvidia (NVDA) to earn $1.30 a share on revenue of $8.09 billion.

During the quarter, Nvidia (NVDA) generated $3.75 billion in data center-related revenue, up 83% year-over-year and 15% sequentially. It also collected $3.62 billion in gaming-related sales, up 31% year-over-year.

Professional visualization revenue was also strong, growing 67% year-over-year to $627 million during the period.

The only weak spot was auto revenue, with sales of $138 million, down 10% year-over-year but up 10% sequentially.

Nvidia (NVDA) will hold a conference call at 5 p.m. EST to discuss the results.

Earlier this month, Morgan Stanley resumed reporting on Nvidia (NVDA), calling it “one of the best growth names” in semiconductors.

Antonio Bordunovi/iStock Editorial via Getty Images

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