According to the forecast on first quarter revenue on Thursday, Nvidia Corp have excelled street expectations. Even after the coronavirus outbreak that projected a heavy loss, the firm still managed increase the sales of the chips to cloud computing suppliers.
Nvidia is the second firm to get heavily affected by the outrageous coronavirus outbreak after Qualcomm Inc.
Nvidia’s chip has the largest share in the market that enables high definition graphics in video games played on laptops and PCs. The company has also expanded to cloud computing and data centre as the chip contains major powerful factors such as speech recognition and facial recognition. Nvidia confirmed that the coronavirus impact on the chip and data centre sales was exactly unclear but has reduced the sales over US$ 100 million.
The firm stated that their ‘hyperscale’ customer although unclear about the names of the customers, have increased impacted the sales. Experienced group of analysts think that the major cloud computing customers refer to Amazon, Alphabet Inc’s Google, and Microsoft.
Kinngai Chan of Summit Insights Group stated that the firm is anticipating a downfall of April quarter as the demand for gaming GPU is weaker in China. The high demand for Nvidia’s data centre business will be compensated by the weak demand in consumer gaming business in China considering the outbreak. Nevertheless, revenue generated by gaming business is still high according to FactSet.