Nvidia forecasts dull third-quarter sales on weak gaming demand

The logo of Nvidia Corporation is seen during the annual Computex computer exhibition in Taipei, Taiwan May 30, 2017. REUTERS/Tyrone Siu/

Aug 24 (Reuters) – Chip designer Nvidia Corp (NVDA.O) predicted third-quarter revenue below market expectations on Wednesday after weak gaming demand led to a 19% sequential decline in second-quarter sales.

The gaming industry is showing signs of weakness as consumers pull back from discretionary purchases such as video-gaming gear amid decades-high inflation.

Chipmakers have also been struggling with supply-chain snarls ahead of the key holiday period due to the Russia-Ukraine conflict and COVID-19 curbs in China's manufacturing hubs.

The company expects third-quarter revenue of $5.90 billion, plus or minus 2%. Analysts had estimated $6.95 billion, according to Refinitiv data.

Reporting by Eva Mathews in Bengaluru; Editing by Arun Koyyur

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Source:www.reuters.com