Nvidia Lowers Q4 Forecast by $500 million

[WYP]

Q4 of 2019's fiscal year hasn't been kind to Nvidia.



Read more about Nvidia lowering their Q4 Forecast.

 

[AlienALX]

He stepped over the line. It's really as simple as that. Just like Apple he pushed the prices up to push the market, and found the limit.

The used market is absolutely buzzing right now with cheap cards. Why would you spend £1500 to play Battlefield 5?. Like, I could imagine them maybe pulling that off if it were an exciting new game but a sequel? £1500? no chance.

That coupled with all of the DLSS hold ups and only really Metro coming? yeah, not a good time to buy a RTX. I agree with what other places have been saying in general about the 2060. It should be £50 cheaper.

 

[SCO77YBOY]

He stepped over the line. It's really as simple as that. Just like Apple he pushed the prices up to push the market, and found the limit.

The used market is absolutely buzzing right now with cheap cards. Why would you spend £1500 to play Battlefield 5?. Like, I could imagine them maybe pulling that off if it were an exciting new game but a sequel? £1500? no chance.

That coupled with all of the DLSS hold ups and only really Metro coming? yeah, not a good time to buy a RTX. I agree with what other places have been saying in general about the 2060. It should be £50 cheaper.

totally agree with you
a few of my mates have gone back to 1080p gaming from 1440p due to cost.
£1500 on a gpu is ridiculous.
( can't wait for metro but if you need an i9 and a 2080ti to play it , there having a laugh )

 

[g0ggles1994]

They screwed the pooch and now paying the price. Just not paying enough in my view.

 

[Dicehunter]

He stepped over the line. It's really as simple as that. Just like Apple he pushed the prices up to push the market, and found the limit.

The used market is absolutely buzzing right now with cheap cards. Why would you spend £1500 to play Battlefield 5?. Like, I could imagine them maybe pulling that off if it were an exciting new game but a sequel? £1500? no chance.

That coupled with all of the DLSS hold ups and only really Metro coming? yeah, not a good time to buy a RTX. I agree with what other places have been saying in general about the 2060. It should be £50 cheaper.

Agree 100%.

I have no problem paying 500, 600 or even 700 for a top end GPU like the 1080 Ti, Even 999 if it's something as unique as the Star Wars Empire Titan Xp full fat card, But £1200 for a cut down card with features that aren't usable outside of 1 benchmark and 1 game with sub par gen to gen performance improvements ? Nope.

We need to go back to having 600-700 be the upper most limit for a non Titan card on the Nvidia side.

 

[grec]

To be fair this is in-line with the adjusted forecasts we've also seen from Intel, Apple, TSMC, and so on in response to the same macroeconomic factors, essentially we're well past the lewis turning point in China and now they're anticipating it gonna's start biting pretty soon, even on the back of strong Q4's for many of the companies. I wouldn't expect any price or product changes as a result of this or anything like that, if you look at the Q&A portion of pretty much every tech companies financial earning announcements in the past week or two they've all been dominated by questions from investors about macroeconomic forces at play with the industry following the variety of hard hitting recent developments in world politics & economics, very few see this as a problem with the product lines, especially given the largest impacts on their stock in recent months were from fears they'd have to write off a load of low end inventory if they replaced it too quickly.

 

[AngryGoldfish]

To be fair this is in-line with the adjusted forecasts we've also seen from Intel, Apple, TSMC, and so on in response to the same macroeconomic factors, essentially we're well past the lewis turning point in China and now they're anticipating it gonna's start biting pretty soon, even on the back of strong Q4's for many of the companies. I wouldn't expect any price or product changes as a result of this or anything like that, if you look at the Q&A portion of pretty much every tech companies financial earning announcements in the past week or two they've all been dominated by questions from investors about macroeconomic forces at play with the industry following the variety of hard hitting recent developments in world politics & economics, very few see this as a problem with the product lines, especially given the largest impacts on their stock in recent months were from fears they'd have to write off a load of low end inventory if they replaced it too quickly.

This makes sense.

But do you reckon Nvidia would have said, "weaker than forecasted sales of its Gaming and Datacenter platforms" if Turing was priced reasonably? As if to say, 'we thought people would pay £800 for an RTX 2080 but not enough did.'

 

[grec]

Notttt specifically, every company listed there has had stock hits because of *forecasts*, not performance. Most of these tech companies are altering their Q1 sales forecasts, regardless of whether they sell directly to consumers or not or how their product line is stacked, it's a reduced forecast based on reduced spending in many countries caused by said economic forces, bad product positioning doesn't usually lead to reduced forecasts this early into a products life span, much of the forecast change is probably a result of reduced Pascal sales in China & the like, it's the older inventory investors are worrying about, not the newer inventory that still has another 12 months or so of shelf life.

 

[TheF34RChannel]

The question I have is, will they learn from this and lower prices to sane levels? (spoiler: no.)

 

[AngryGoldfish]

Notttt specifically, every company listed there has had stock hits because of *forecasts*, not performance. Most of these tech companies are altering their Q1 sales forecasts, regardless of whether they sell directly to consumers or not or how their product line is stacked, it's a reduced forecast based on reduced spending in many countries caused by said economic forces, bad product positioning doesn't usually lead to reduced forecasts this early into a products life span, much of the forecast change is probably a result of reduced Pascal sales in China & the like, it's the older inventory investors are worrying about, not the newer inventory that still has another 12 months or so of shelf life.

OK, I getcha. Thanks for explaining.

 

[NeverBackDown]

The reason for the lower forecasts is specifically because of China, nothing to do with RTX cards pretty much. DataCenter and Servers FAR FAR outweigh anything consumer related. All the big hardware companies make the majority of there money from outside consumer markets.

So no they won't learn from there MSRP increases.

 

[TheF34RChannel]

The reason for the lower forecasts is specifically because of China, nothing to do with RTX cards pretty much. DataCenter and Servers FAR FAR outweigh anything consumer related. All the big hardware companies make the majority of there money from outside consumer markets.

So no they won't learn from there MSRP increases.

You've been offering nice pieces of perspective in two threads, thanks, and good point. Consumer segment is peanuts compared to the professional lines. The leather man always says consumers make up for an enormous amount of revenue but Nvidia probably does just fine if that ever went away.

 

[NeverBackDown]

You've been offering nice pieces of perspective in two threads, thanks, and good point. Consumer segment is peanuts compared to the professional lines. The leather man always says consumers make up for an enormous amount of revenue but Nvidia probably does just fine if that ever went away.

For Nvidia they make about half from consumer markets. However they sell an obscene amount more than they do for data center and servers. If you look at that growth compared to consumer it's growing very fast and the margins they make are very high.
So while this will hurt them it's not all that much. Maybe a few hundred million vs losing billions on the Data center.