On Monday, Nvidia took the unusual step of offering a revised Q4 2019 financial estimate ahead of its scheduled disclosure on February 14. The reason: Nvidia had already predicted low revenue numbers, and the hardware producer is already confident that its low estimate was still too high.
The original quarterly revenue estimate of $2.7 billion has since dropped to $2.2 billion, a change of roughly 19 percent. A few new data points factor into that revision. The biggest consumer-facing issue, according to Nvidia, is “lower than expected” sales of its RTX line of new graphics cards. This series, full of proprietary technologies like a dedicated raytracing processor, kicked off in September 2018 with the $1,199 RTX 2080 Ti and the $799 RTX 2080.
The RTX launch was bungled, and the cryptocurrency hype is way past its prime. It’s not a surprise Nvidia is going to experience a rough year.