By Chavi Mehta and Jane Lanhee Lee
(Reuters) -Chip designer Nvidia Corp forecast second-quarter revenue below Wall Street estimates on Wednesday, bracing for supply chain snags and slowing demand for graphics chips used in gaming devices.
A rout in the cryptocurrency market also hurt demand for its GPUs, or graphics processing units, which are favored by miners of cryptocurrency. The company’s chief financial officer said in a statement Wednesday that Nvidia had a 52% year over year decline in its OEM and Other revenue category due to a drop in revenue from processors for cryptocurrency mining.
“The effectiveness of deep learning to automate intelligence is driving companies across industries to adopt Nvidia for AI computing. Data Center has become our largest platform, even as Gaming achieved a record quarter,” said Nvidia Chief Executive Officer Jensen Huang in the company’s earnings statement.
Nvidia forecast second-quarter revenue of $8.10 billion, plus or minus 2%. Analysts on average expect $8.45 billion, according to IBES data from Refinitiv.
Revenue for the first quarter ended May 1 rose 46% to a record $8.29 billion. Excluding items, the company earned $1.36 per share, beating estimates of $1.29
(Reporting by Chavi Mehta in Bengaluru and Jane Lanhee Lee in California; Editing by Devika Syamnath, Bernard Orr)