![]() This is the second time, Gaming has suffered from excess inventories built up from a fall in Crypto prices this time, the fall was even steeper with Q2-FY23 revenues dropping 33% YoY and 44% sequentially. The Ethereum MergeĪs one of my favorite investors, Peter Lynch said "Fool me once, shame on you fool me twice, shame on me!". The 66% drop from $340 in Nov 2021, to $116 today has been gut-wrenching, to say the least. To add insult to injury, this week, the US government decided to ban all semiconductor sales of strategic importance to Chinese companies. On earnings day on August 24th, it guided to a further fall to $5.7Bn in revenues for Q3-FY23 - another sequential drop of 14%. ![]() ![]() The second and bigger blow crystallized in August 2022 when NVIDIA guided early for a disastrous Q2-FY23, taking a charge of $1.3Bn for excess inventory and guiding for a steep 19% drop in sequential revenue to $6.7Bn against consensus estimates of $8.10Bn. NVIDIA first started showing cracks in its armor when it walked away from the ARM deal, losing about $1.25Bn in fees. ![]() It has been a very painful past twelve months for both the company and its shareholders. NVIDIA ( NASDAQ: NVDA) is as relevant and dominant today, even as it struggles to recover from the aftereffects of a crypto winter and the Ethereum Merge. Adventtr/iStock via Getty Images When it Rains it Pours ![]()
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