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Nvidia CEO Jensen Huang
Nvidia on Thursday reported disappointing third-quarter earnings, leading shares to slump as much as 18% early Friday.
The chipmaker said it earned $1.82 a share, falling short of the $1.92 that was expected by Wall Street according to Bloomberg data. Its bottom line came in at $3.18 billion, missing on the $3.24 billion that was expected.
Looking ahead, the company expects its fourth-quarter revenue to be $2.7 billion, while analysts were expecting $3.4 billion.
The underwhelming financial results were largely due to an excess of mining GPUs for cryptocurrency. "Our near-term results reflect excess channel inventory post the crypto-currency boom, which will be corrected," CEO Jensen Huang said Thursday in the earnings release. Management in August warned that it's expecting "essentially no cryptocurrency" business moving forward.
Also at stake is a product transition which will unlikely ramp until next year.
In August Nvidia unveiled its new graphics cards, which improve the gaming experience through features like real-time ray tracing. But those new features aren't yet available because games supporting the high-end graphics cards aren't out until 2019.
But nearly every Wall Street analyst is still bullish about the chip giant, saying it's time to buy the dip as the company has good fundamentals.
Here is what they are saying:
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