Nvidia 1Q view is short of St. as PC sales slow
NEW YORK (AP) — Nvidia Corp., which makes graphics chips, gave a fiscal first-quarter revenue forecast below Wall Street's expectations amid slowing PC sales.
Nvidia said late Wednesday that it expects revenue of about $940 million, plus or minus 2 percent, for the current quarter. Analysts, on average, were expecting revenue of $1.07 billion for the quarter ending in April, according to a poll by FactSet.
The company's fiscal fourth-quarter results topped analyst expectations.
Nvidia's main product, the graphics processing unit, is used in computers and laptops.
It is focused on expanding into fast-growing areas such as mobile devices and data centers, said Citi Investment Research analyst Glen Yeung in a note to investors. While that could be a good long-term strategy, there are problems in the short term, he said. The company's growth is largely limited to market share gains as the PC industry slows.
Shares dipped 6 cents to $12.31 in morning trading Thursday.