Nvidia’s warning came amid speculations in the face of soaring inflation. After Nvidia shares plummeted, the tech-rich Nasdaq Composite turned lower. The S&P 500 also slipped down as its information technology sector shed more than 1% during the session.
“We had been anticipating a slowdown in the gaming segment following the crash in cryptocurrency prices and associated mining demand as well as weaker macroeconomic conditions, and we previously had gaming sales sequentially declining for the remainder of 2022,” Morningstar analyst Abhinav Davuluri said in a research note Monday.
“We think Nvidia could be due for a few challenging quarters, which could create a more attractive entry point,” said Davuluri. The company’s data center business should “prove more resilient” to macroeconomic headwinds, he added.
Nvidia said Monday its second-quarter data center revenue was $3.81 billion, up 1% from the first quarter and up 61% from the prior-year period.
