Nvidia CEO: Cautious Coronavirus Reduces First Quarter Expectations by $ 100 Million

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Jensen Huang, CEO of Nvidia, said in an interview with VentureBeat that he had reduced Nvidia's expectations for graphics and AI chips revenue this quarter as coronavirus could affect the supply chain of the company.Citing the coronavirus epidemic in China, Huang said the company is monitoring the situation closely. The company therefore prudently razed the revenue estimates for the first quarter. But he also said the effect is mitigated in part because much of Nvidia's production (via subcontractors) is based in Taiwan.

A third of Nvidia's gaming activities are in China, and locking out the country's citizens means they won't do much shopping, he said. But it can also mean that people will stay at home and play more games.

Due to the coronavirus, Nvidia and other companies have withdrawn from the Mobile World Congress, the major trade fair for mobile technology in Barcelona, ​​Spain. Consequently, the CMM organizers decided to disconnect from the show.

For the fourth financial quarter ended January 26, Nvidia reported that it exceeded earnings expectations, earnings per share more than doubled from a year ago and revenues increased 41% to reach $ 311 million.

Huang said he was happy that Nvidia was working with Tencent on a cloud gaming service, but he said the transition to the cloud would be a long-term journey into the game. Launching the cloud gaming service GeForce Now in the West with an open platform, with several hundred games available.

Huang said Nvidia's GeForce RTX graphics cards have now reached the ideal point, with cards priced at $ 299. Huang said he was confident that PC games with RTX graphics, which have real-time ray tracing, will become more popular as next generation game consoles arrive this fall. These consoles will have real-time ray tracing and they will raise the bar for graphics, said Huang.

At the same time, he said that AI was Nvidia’s "main engine of growth", with record sales of data center graphics processing units (GPUs).

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