Weak PC sales hurts Nvidia

nvidiaNvidia predicted lower-than-expected revenue for the second quarter because falling PC sales have weakened the need for its graphic processor units.

Nvidia also reported first-quarter revenue and profit below what the cocaine nose jobs of Wall Street estimated.

Chief Financial Officer Colette Kress attributed the tepid forecast to a fall in demand from OEMs and PC market which is softer than a baby’s bottom.

Worldwide PC shipments fell about 6.7 percent to 68.5 million units in the first quarter, and are expected drop 4.9 percent during the year.

Rival chipmaker AMD reported a steep fall in first-quarter sales last month and said it expected weak demand for PCs to continue for some time.

Nvidia was also hurt by the strong dollar, which has risen about 9 percent. The outfit does a lot of its business in US dollars which has made its GPU gaming more expensive.

The outfit forecast second-quarter revenue of $1.01 billion, plus or minus two percent, below the average analyst estimate of $1.18 billion.

The company’s net income fell to $134 million in the first quarter ended April 26.

Revenue rose 4.4 percent to $1.15 billion, but missed the average estimate of $1.16 billion.