Nvidia Cuts Q4 View; Sees 40%-50% Sequential Rev Drop

Nvidia (NVDA) this morning warned that it now expects revenue for its fiscal fourth quarter ending January 25 to be down 40%-50% sequentially from the fiscal third quarter, due to “further weakness in end-user demand and inventory reductions by Nvidia’s channel partners in the global PC supply chain.”:That’s a shocking miss: the new guidance implies revenue of $448.9 million to $538.6 million, dramatically below the Street consensus of $805.5 million. Nvidia, which makes graphics chips, is not going to hold a conference call today to discuss the new guidance. There are warnings and there are warnings, if you know what I means, and this one is a serious warning, which is not going to sit well with investors in any part of the PC food chain. In pre-market trading, NVDA is down 38 cents, or 5%, to $7.23. (link)