Semiconductor and microchip company Nvidia (NVDA) announced that its third-quarter revenue fell 17% from a year ago as global demand for its products slows.
The Santa Clara, California-based company reported earnings per share of $0.58 U.S. versus $0.69 U.S. that was expected on Wall Street.
Revenue for the quarter totalled $5.93 billion U.S. compared with $5.77 billion U.S. forecast by analysts, according to Refinitiv data.
Looking ahead, Nvidia said it expects about $6 billion U.S. in sales in the current fourth quarter, lower than the consensus estimate of $6.09 billion U.S.
Nvidia said its sales are declining due to slumping demand, notably low demand for its data centre chips in China.
Chip companies have been slashing order expectations and warning that their customers are overstocked with computer parts.
The computer gaming market, in particular, is slowing after a pandemic boom. Nvidia said its graphics cards are now selling at a discount. Nvidia also recently announced a new generation of graphics cards that are priced higher than previous ones.
Nvidia’s stock is down 47% this year and trading at $159.10 U.S. per share.
