Semiconductor manufacturer Nvidia said in a forecast that the economic situation in China is also undermining its performance.
“Deteriorating macroeconomic conditions, particularly in China, impacted consumer demand for NVIDIA gaming graphics processing units,” the company said in a press release. “In addition, sales of certain high-end GPUs using NVIDIA’s new Turing architecture were lower than expected. These products deliver a revolutionary leap in performance and innovation with real-time ray tracing and AI, but some customers may have delayed their purchase while waiting for lower price points.”
Chinese financial markets have struggled over the past year as economic leaders in Beijing tried to prolong the country’s streak of impressive GDP growth with mixed success. Benchmark Shanghai Composite is down 27 percent over the past 12 months. Such growth outlook concerns have taken their toll on high-flying technologies companies like Nvidia.
“Q4 was an extraordinary, unusually turbulent, and disappointing quarter,” said Jensen Huang, founder and CEO of NVIDIA. “Looking forward, we are confident in our strategies and growth drivers.”
Stock futures fell to new lows after the Caterpillar and Nvidia comments.
iPhone maker Apple — once the modern world’s largest publicly traded company — cut its sales forecast earlier this month after CEO Tim Cook blamed slowing iPhone sales in China.
Cook told CNBC that Apple products have not been targeted by the Chinese government, though some customers may have chosen not to buy an Apple device because it is an American company. The United States and China are in the middle of a tit-for-tat trade war, with each country imposing tariffs on billions of dollars worth of goods.
Apple reports earnings results on Tuesday, Jan. 29.
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