The chip-maker Nvidia Corp. revealed its second-quarter revenue projections on Wednesday. The Company forecasted a cut in its revenue from $950 million to $970 million as estimated on May 13.
The announcement was made by the Company after the markets got closed and it expressed that the updated forecast would not be elucidated before it showcases its second-quarter earnings in August.
The chopping down in the revenue outlook is caused due to the weak consumer spending, increasing the cost of memory and the impact of economies of European and Chinese markets. The consumers are shifting towards less expensive chips and computer products, which is a cause of worry for the Company.
The launch of Apple’s new version of its significant desktop computer, the iMac embedded with Advanced Micro Devices’ graphic cards, also pushed the Nvidia to declare its reduced revenue outlook.
In 2006, Apple decided to use the chips made by AMD only, shunning the Nvidia, which made AMD’s market for graphic cards rise to 51.1%, as told by Mercury Research analyst Dean McCarron.
Patrick Wang, analyst at Wedbush Securities, said, "I don't think they're out of the woods yet. I think it will take another quarter or two of cleaning up, and I don't think the stock starts working again until later this year".