Nvidia cuts its 2nd-quarter sales forecast on weakness in Europe and China; shares fall

Nvidia cuts its 2Q sales forecast; shares fall

SANTA CLARA, Calif. — Nvidia Corp. lowered its sales forecast for its second quarter Wednesday, blaming a shift toward lower-priced chips as well as economic weakness in Europe and China. Its shares fell in aftermarket activity.

The graphics chip maker said it now expects to report revenue of $800 million to $820 million for the quarter ending Aug. 1. That’s down from a previous forecast of $950 million to $970 million.

Analysts polled by Thomson Reuters expect revenue of $955 million.

Aside from broader economic issues, Nvidia said it expects the revenue shortfall because an increase in the cost of making graphics processors has caused a greater-than-expected shift to lower-end chips.

Nvidia shares slipped 67 cents, or 6.6 percent, to $9.46 in extended trading. The stock earlier slid 33 cents, or 3.2 percent, to close at $10.13. Shares have ranged from $9.90 to $18.96 over the past year.