A sign is posted at the Nvidia headquarters in Santa Clara, California.
Justin Sullivan/Getty Images
Nvidia
shares plunged in premarket trading after the chip manufacturer shared preliminary financial results for the second quarter.
Nvidia (ticker:
NVDA
) is expecting revenue to be $6.7 billion, well below guidance and estimates calling for $8.1 billion. The miss was primarily due to weaker-than-forecast gaming revenue, which will come in 33% lower year over year at $2.04 billion.
Adjusted gross margins are expected to come in at 46.1%, down from the company’s previous guidance for 67.1%, Nvidia said.
Nvidia will report final earnings results on Aug. 24. Shares were down 7.1% to $176.06 in premarket trading.
Write to Sabrina Escobar at sabrina.escobar@barrons.com
