The Q1 report of graphics card giant Nvidia is looking rather gloomy, as they reported that the nominal sales of its crypto mining ship. It is expected that the company’s total revenues are expected to be down in Q2, which in turn is propelling down its share price.
Nvidia, one of the most popular American graphics card manufacturers, reported a decline in its stock price on Thursday and as a result, the revenue projection for Q2 has fallen below expectation.
A lot of big tech companies have also found themselves in this situation in recent times, as the bear market continues. Companies like Twitter and Snapchat, among many others, have seen their stock value decline in the last month.
According to a report by the Securities and Exchange Commission (SEC),“Quarterly growth from Q4 2021 to Q1 2022 was strong with an 8% increase in revenue to $8.98 billion and 3% increase in earnings per share to $1.36.”
The Q2 revenue projection is expected to have a revenue decline and is less promising. Project revenue is forecasted to be around $8.1 billion, which is 4% lower than expected.
Investors are not encouraged by the disappointing guidance in after-hours trading that took place on Thursday, which shows that Nvidia (NVDA) shares are down 7% to $157.8. NVDA stock has declined nearly 50% over the year, which is in sync with the trends related to tech stock performance across the market.
Nvidia revised its revenue expectations for Q2 in the report down to $8.1 billion “plus or minus 2%” due to “Russia and the COVID lockdowns in China.”
These two events have had a very devastating effect on the global economy. One of the sectors which has felt this the hardest has been the tech industry, with many big tech companies trending downwards.
Earlier this month, on May 6, Nvidia was in trouble with the SEC and was forced to pay $5.5 million as a fine. Nvidia was accused of false reporting in regards to their declaration of revenue from crypto mining in 2018. Many investors sold NVDA stock the next trading day as a result of this announcement.
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