Graphics and data center chipmaker Nvidia ( NVDA) is scheduled to report its Q1 2020 earnings after the bell on Thursday. And the company, which saw year-over-year sales declines in the previous quarter, is expecting more of the same.
Wall street analysts are calling for Nvidia to bring in $2.2 billion in revenue, down from the $3.2 billion the company saw in Q1 2019.
Earnings per share, meanwhile, are expected to top out at $0.81 per share. The company recorded $2.05 per share in the same quarter a year ago.
Nvidia’s recent troubles are tied to two major trends, the slowing Chinese economy and, more recently, tariffs, as well as an inventory overhang caused by a decrease in gaming graphics card sales.
Sales of cards were on fire in 2017 and early 2018 due to the rise of cryptocurrency miners. But as graphics cards have fallen out of favor with miners, Nvidia’s sales of plummeted, leaving inventory unmoved. That, though, is finally clearing up.
Nvidia has made a significant push into the artificial intelligence and machine learning industries thanks to its data center processing technologies, but the company still relies primarily on its gaming business for more than half of its revenue.
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Source:: Daily Times