Nvidia did something unusual yesterday, as it gave an updated financial estimate for the last quarter of 2019. The company warned that unusually low profits are coming in 2019! The reason behind this estimate is because low profits had already been predicted from the previous year and at the same time the hardware manufacturer of the company was almost certain that the low estimate was too "high" in the first place.
The initial estimate for revenue for the quarter was $2.7 billion, but it actually fell to $2.2 billion. That's a 19% change. According to Nvidia, the biggest customer issue was lower than expected sales of its RTX series of new cards. The RTX series is packed with proprietary technologies, such as processor-based ray tracing, and launched in September 2018 with the RTX 2080 Ti at $1,119 and the RTX 2080 at $799.
According to Nvidia, these products have made a revolutionary leap in performance and innovation with the help of raytracing and artificial intelligence, but some customers may have "delayed" the purchase, as they await lower prices and additional guidance for RTX technology in real games.
Nvidia founder Jensen Huang said that economic uncertainties and failed deals last month were the factors that led to lower estimates in a sector that is inherently unpredictable. These reasons will therefore lead to the company's unusually low revenue, at least according to its statements. In particular, the founder emphasized that these estimates refer to the last quarter of 2019. However, some of the new releases are expected to increase profits. The new profitable products will be the RTX 2060 graphics card, new RTX-powered laptops and new data center products that will satisfy the increasing number of customers who want artificial intelligence.
