Nvidia shares have plummeted over 15% as the company cut Q4 revenue projections by over $500 million, dropping from $2.7 billion to $2.2 billion. Nvidia has recently put a lot of hopes into the Chinese consumer market and into cryptocurrencies. Unfortunately, neither the Chinese consumer market nor the crypto market are doing well at the moment.
Nvidia had already foreseen that the company would not be as successful in the fourth quarter as original forecasts suggested. This was due to a lack of demand on the part of cryptocurrency miners, but there was more to come which proved to be less predictable. China’s recent economic slowdown was a twist that they were not expecting, and it was enough to cost Nvidia over $500 million. The company will now join a list of companies warning that have cited the slowed Chinese economy for their troubles.
Nvidia has been going through rough waters recently. A series of controversies, unfortunate decisions, and forces beyond their control have costed the company greatly in recent years. Q4 was unexpectedly bad for them, however.