The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.NVIDIA Corp engages in the design and manufacture of computer graphics processors, chipsets, and related multimedia software. On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Moreover, the chip maker stated that its “design-win pipeline” had jumped to $30 billion, versus its previous estimate of $19 billion. On a positive note, Qualcomm (NASDAQ: QCOM), another leading chip maker, yesterday reported that it expected the total addressable market for automotive chips to reach roughly $100 billion by 2030.

The latter chips are often used to facilitate crypto mining.Īlso noteworthy is that Nvidia sells chips to data centers.

Multiple commentators have identified the crypto slump, which has resulted in much less crypto mining, as the main catalyst for the decline in the demand for Nvidia’s gaming chips. NVDA also cut its Q3 revenue guidance, blaming weaker-than-expected sales of its gaming chips. In late August, Nvidia (NASDAQ: NVDA) noted that its gaming chip revenue had dropped a huge 44% in Q2 versus Q1. Another Problem and One Bright Spot for Chip Stocks He blamed lower demand by Chinese companies and macro trends for the latter situation.Įarlier this week, I noted that Mizuho securities analyst Vijay Rakesh had downgraded Micron (NASDAQ: MU) and Western Digital (NASDAQ: WDC), citing weakening demand for the companies’ flash memory products, servers and hard disk drives. Moreover, Zisner reported that “the data-center market has weakened,” Barron’s noted. The chip maker had previously expected PC sales to slump around 15% in 2022. In July, the chip maker had forecast that PC sales would drop 10% in 2022 versus 2021.ĭan McNamara, who leads AMD’s business-server unit, agreed that the PC market is poised to decline more than previously anticipated this year. Intel CFO David Zisner said that PC sales are on track to fall more than 10% year-over-year (YOY). After meeting with senior executives of chip makers Intel (NASDAQ: INTC) and AMD (NASDAQ: AMD), Bernstein analyst Stacy Rasgon reports that global PC sales are declining more than the companies had previously expected.

Nvda price to sales