NVIDIA today reported revenue for the third quarter ended Oct. 28, 2018, of $3.18 billion, up 21 percent from $2.64 billion a year earlier, and up 2 percent from $3.12 billion in the previous quarter.... NVIDIA Announces Financial Results for Third Quarter Fiscal 2019
A massive earnings miss for Nvidia. Revenue was $3.18bn vs $3.24bn expected and forecast was $2.7bn vs $3.4bn expected. Stock tanked 17% after hours. It seems that Nvidia badly miscalculated the crypto currency boom and overproduced Pascal cards. They are now sitting on an enormous number of mid-range Pascal GPUs which will take a couple of quarters to wind down, impacting their projected earnings to the tune of $700 million (Huang also threw AMD under the bus, tanking their stock as well). I guess we see now why Nvidia is in no rush to release a new mid-range GPU.
Nvidia stock after the announcement. After the bell on Thursday, chipmaker Nvidia (NVDA) saw its shares plunge 15% after the company's fiscal third quarter report. While the company beat on the bottom line and increased its capital return plan for shareholders, revenues missed and guidance was abysmal. For the near term, the company's growth is gone, meaning this name is no longer a street darling... https://seekingalpha.com/article/4222971-nvidia-plunges-growth-gone
IMO, investors placed too high a price on the stock. After all, the crypto crash was well known but I think investors simply brushed it off and expected too much from the company (the same goes for AMD). I agree that the short-term outlook isn't as good as it once was, but the long-term outlook is still solid (again, the same goes for AMD ). Believe it or not, that's not a typo. Nvidia's own site shows it as 2019..
If they were to actually lower prices to reasonable levels those older cards would be snapped up much faster... But are they gonna.
Well, since theres nothing for them to offer below the RTX 2070 level, I think they would prefer remaining Pascal stocks to carry them through till next major release. Therefore not much incentive for them to lower prices.
