American graphics card maker Nvidia’s stock price tumbled in after trading hours on Friday because revenue prospects for Q2 were less than expected.
Quarterly growth from Q4 2021 to Q1 2022 was strong with an 8% increase to $ 8.98 billion and a 3% increase in earnings per share to $ 1.36. It also said it will continue its $ 15 billion share buyback program until the end of 2023 accordingly filed to the Securities and Exchange Commission (SEC).
However, the Q2 outlook is less promising and project revenue will be $ 8.1 billion, which is 4% lower than expected.
The disappointing guidance did not impress investors after trading hours on Thursday with shares of Nvidia (NVDA) down 7% to $ 157.8. NVDA is down almost 50% on the year, reflecting the poor performance of its technology stocks in the market.
The technology company experienced a decline in Cryptocurrency Mining Processor (CMP) sales in Q1 to a “nominal” level compared to $ 155 million from a year ago.
Nvidia suffered a 33%shortfall. bathi CMP samesthine in Q2 last year for $ 266 million, followed by $ 105 million in Q3 and then $ 24 million in q4. That is now falling apart again.
Nvidia is down 10% after earnings, revenue forecasts are unpredictable pic.twitter.com/2EcnFPDWlR
– db (@tier10k) 25 May 2022
Nvidia changed its revenue expectations for Q2 in the report to $ 8.1 billion “plus or minus 2%” due to “Russia and COVID locks in China.”
Those two factors could only reduce profits to $ 500 million according to the report.
related: GPU prices still in decline: Are gamers excited about Bitcoin’s troubles?
The company is based in Santa Clara CMPs can used to mine Bitcoin (BTC), Ethereum (ETH), and several other cryptocurrencies. Its graphics card, designed for gaming, can also be used to mine cryptocurrency unless limited.
The supply of CMP is rare even in the secondary market, possibly causing sales to be low. The new CMP 170HX, the tallest model to date, was priced at $ 4,700 when it launched last October.
On May 6, Nvidia was forced to pay $ 5.5 million to the SEC to settle the alleged case failed to open how much of the revenue came from crypto mining in 2018. The announcement spooked investors, who sold NVDA down 6% on May 9, the next trading day.
