Nvidia tanks 12% after chipmaker cuts guidance, citing 'deteriorating' economic conditions in China
- The warning adds Nvidia to a growing list of U.S. companies facing revenue challenges in China.
- The company reports earnings on Feb. 14, and now expects quarterly revenue of $2.20 billion, down from previously stated guidance of $2.70 billion.
- The company also pointed to headwinds in gaming and datacenters.
Published 2 Hours Ago Updated 26 Mins AgoCNBC.com
Shares of Nvidia tanked as much as 17 percent in early trading Monday after the company lowered its revenue guidance for the fourth quarter citing "deteriorating macroeconomic conditions, particularly in China."
The stock pared some losses by mid-morning to trade 12 percent down. A drop that size trims roughly $12 billion off Nvidia's market cap.
The warning adds Nvidia to a growing list of U.S. companies facing revenue challenges in China. Apple issued a rare revenue warningearlier this month following slowdowns in the Chinese market, and construction machinery company Caterpillar pointed to lower demand in China in its earnings report Monday morning. A flood of tech earnings reports kicks off this week.
Nvidia reports earnings on Feb. 14, and now expects quarterly revenue of $2.20 billion, down from previously stated guidance of $2.70 billion. The company also said quarterly margin will be impacted by charges related to "current market conditions."
"A number of deals in the company's forecast did not close in the last month of the quarter as customers shifted to a more cautious approach," Nvidia said in a statement.
Here's the full statement from the chipmaker:
NVIDIA (NASDAQ: NVDA) today updated its financial guidance for the fourth quarter of fiscal year 2019, reflecting weaker than forecasted sales of its Gaming and Datacenter platforms.
In Gaming, NVIDIA's previous fourth-quarter guidance had embedded a sequential decline due to excess mid-range channel inventory following the crypto-currency boom. The reduction in that inventory and its impact on the business have proceeded largely inline with management's expectations. However, deteriorating macroeconomic conditions, particularly in China, impacted consumer demand for NVIDIA gaming GPUs. 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 and further demonstrations of RTX technology in actual games.
In Datacenter, revenue also came in short of expectations. A number of deals in the company's forecast did not close in the last month of the quarter as customers shifted to a more cautious approach. Despite these near-term headwinds, NVIDIA has a large and expanding addressable market opportunity in AI and high performance computing, and the company believes its competitive position is intact.
"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.
"The foundation of our business is strong and more evident than ever – the accelerated computing model NVIDIA pioneered is the best path forward to serve the world's insatiable computing needs. The markets we are creating – gaming, design, HPC, AI and autonomous vehicles – are important, growing and will be very large. We have excellent strategic positions in all of them," he said.
NVIDIA expects its GAAP and non-GAAP gross margin to be impacted by approximately $120 million in charges for excess DRAM and other components associated with the updated revenue guidance and current market conditions.
The company will provide Q4 fiscal 2019 financial results and Q1 fiscal 2020 guidance on its earnings call scheduled for Feb. 14.
Some stock market investors may abide to the saying, nothing ventured nothing gained. Others may operate by following the saying slow and steady wins the race. The correct move for one investor may not be the same for another. Some may choose to go all in, while others may look to reduce risk with stable long-term staple companies. Active equity investors may be forced to make hard decisions at some point, but working hard and being prepared may prove to be a portfolio booster. Dedicated investors are often willing to put in the extra hours in order to make sure no stone is left unturned.
Currently, the 14-day ADX for Pacific Gas & Electric Co (PCG) is sitting at 47.80. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.
Pacific Gas & Electric Co (PCG) presently has a 14-day Commodity Channel Index (CCI) of 3.80. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well.
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings. The 14-day RSI is currently at 38.46, the 7-day stands at 48.22, and the 3-day is sitting at 61.62.
Pacific Gas & Electric Co (PCG) currently has a 50-day moving average of 21.45, the 200-day is at 38.83, and the 7-day is 8.86. In the investing realm, using the moving average for technical equity analysis is still very popular among traders and investors. The moving average can be used as a reference point to help discover buying and selling opportunities. Using a longer term moving average such as the 200-day may help block out the noise and chaos that is sometimes created by daily price fluctuations. In some cases, MA’s may be used as strong reference points for finding support and resistance levels.
Traders may be narrowing in on the ATR or Average True Range indicator when reviewing technicals. At the time of writing, Pacific Gas & Electric Co (PCG) has a 14-day ATR of 2.47. The average true range indicator was created by J. Welles Wilder in order to measure volatility. The ATR may assist traders with figuring out the strength of a breakout or reversal in price. It is important to note that the ATR was not designed to determine price direction or to predict future prices.
It may be difficult for many investors to decide the right time to buy or sell a stock. Veteran investors may seem like they have it all figured out, and amateurs may feel like they are swimming upstream. Seasoned traders may have spent many years monitoring market ebbs and flows. Knowing when to take profits or cut losses can be a tough skill to achieve. It might be hard letting go of a well researched stock that hasn’t been performing well. Being able to exit a trade that has gone south can be a portfolio saver in the long run.
Doing standard fundamental stock analysis is fairly straightforward. These days, investors have easy access to large amounts of available data. The biggest problem for the average investor may be dedicating the time to actually doing the research. One goal of studying the fundamentals is to establish the true value of a stock compared to how it is currently trading in the marketplace. Many investors believe that identifying quality stocks should be a cornerstone of portfolio construction. Obtaining as much knowledge as possible about a stock can help make the buying decisions a little easier. Some investors may trust other people or products to do the required research, but others may wish to roll up the sleeves and do all the analysis themselves.
Traders are keeping a keen eye on shares of Pacific Gas & Electric Co (PCG). The Average Directional Index or ADX may prove to be an important tool for trading and investing. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend. Presently, the 14-day ADX is resting at 47.80. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.
Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Pacific Gas & Electric Co (PCG)’s Williams Percent Range or 14 day Williams %R is resting at -55.72. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.
When performing stock analysis, investors and traders may opt to view technical levels. Pacific Gas & Electric Co (PCG) presently has a 14-day Commodity Channel Index (CCI) of 3.80. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory.
Checking in on moving averages, the 200-day is at 38.83, the 50-day is 21.45, and the 7-day is sitting at 8.86. Moving averages may be used by investors and traders to shed some light on trading patterns for a specific stock. Moving averages can be used to help smooth information in order to provide a clearer picture of what is going on with the stock. Technical stock analysts may use a combination of different time periods in order to figure out the history of the equity and where it may be headed in the future. MA’s can be calculated for any time period, but two very popular time frames are the 50-day and 200-day moving averages.
Investors might be preparing to do a portfolio evaluation as we move towards the close of the year. There may be plenty of big winners from the first half of the year, but there may also be some underperformers that need to be reviewed. Making sure that the portfolio stays in balance can help prepare the investor for success over the next few quarters. With the stock market still riding high, investors may be wondering how to play the market into the near future. If market momentum starts to shift, investors may need to be ready to make some tougher decisions. Being prepared for any market situation can help the investor cope with rough waters when the time comes.
Shifting gears to the Relative Strength Index, the 14-day RSI is currently sitting at 38.46, the 7-day is 48.22, and the 3-day is currently at 61.62 for Pacific Gas & Electric Co (PCG). The Relative Strength Index (RSI) is a highly popular momentum indicator used for technical analysis. The RSI can help display whether the bulls or the bears are currently strongest in the market. The RSI may be used to help spot points of reversals more accurately. The RSI was developed by J. Welles Wilder. As a general rule, an RSI reading over 70 would signal overbought conditions. A reading under 30 would indicate oversold conditions. As always, the values may need to be adjusted based on the specific stock and market. RSI can also be a valuable tool for trying to spot larger market turns.
Investing in the stock market can sometimes draw intense emotion from individual investors. When the market slips into a chaotic state, some investors may let their emotions get the best of them which can lead to impulsive decisions. On the other side of the coin, market chaos may cause certain investors to freeze in a panic. This may mean that the investor becomes shaken to the point that they are unable to make any decisions let alone an educated one. Discipline is a quality shared by many successful traders and investors. Staying committed to the plan, whether short-term or long-term, can help investors make it through those times of extreme market uncertainty.
Thanks To Global Warming, Plants Can't Do Their Job As Well
The latest news on global warming trends.
This awareness is timely as the U.K.'s Met Office, a national weather service, just predicted that in 2019 atmospheric carbon dioxide levels will increase more than they have in the past 62 years.
"With emissions already at a record high, the buildup of carbon dioxide in the atmosphere will be larger than last year due to a slower removal by natural carbon sinks," the Met Office said in a release.
Let's break that statement down: While increases in atmospheric carbon dioxide are attributed to fossil fuel emissions and land clearing (AKA, human activities), they are tapered thanks to the help of plants. Yep, plants and forests act as natural carbon sinks and absorb excess CO2 that would otherwise be released into the atmosphere. This also means that when plants aren't functioning at their full capacity, we feel the impact of global warming even more.
This year, due to the rise in temperatures in our oceans, we can expect a hotter and drier climate, which will make it difficult for plants to grow and do their jobs. "Each year's CO2 is higher than the last, and this will keep happening until humans stop adding CO2 to the atmosphere," Richard Betts of the Met Office explained in the release.
OK—so what can I do about it?
While it's overwhelming hearing about the vicious cycle of global warming, there's a lot we can do to help. You can start with small lifestyle changes such as carpooling, choosing reusable items instead of single-use plastics, and joining community efforts to shift environmental policy.
While the trend in CO2 emissions is looking daunting, as Betts pointed out—reducing CO2 emissions is the answer, and we could be part of the solution.
Ready to learn more about how to unlock the power of food to heal your body, prevent disease & achieve optimal health? Register now for our FREE Functional Nutrition Webinar with Kelly LeVeque.
Faster carbon dioxide rise expected this year, says study
The forecast by researchers from the UK Met Office and University of Exeter is based on a combination of factors including rising anthropogenic emissions and a relative reduction in the uptake of carbon-dioxide by ecosystems due to tropical climate variability.
The Earth this year may witness one of the largest increase in atmospheric carbon dioxide in over six decades of record keeping, scientists say. The forecast by researchers from the UK Met Office and University of Exeter is based on a combination of factors including rising anthropogenic emissions and a relative reduction in the uptake of carbon-dioxide by ecosystems due to tropical climate variability. “Since 1958, monitoring at the Mauna Loa observatory in Hawaii has registered around a 30 per cent increase in the concentration of carbon-dioxide in the atmosphere,” said Richard Betts, a professor at University of Exeter.
In the first decade of measurements, the rise of atmospheric CO2 was less than 0.9 ppm per year. The rise has since become generally faster over time as human emissions have increased, but with fluctuations related to climate swings such as El Nino. The average CO2 concentration in 2019 is forecast to be 411.3 ppm, with monthly averages reaching a peak of 414.7 ppm in May, temporarily dropping back to 408.1 ppm in September before rising again at the end of the year.
New Carbon capture system transforms CO2 into hydrogen fuel
January 28, 2019
Researchers from UNIST and Georgia Tech have developed a unique Hybrid Na-CO2 System.
A new carbon capture device developed by researchers at Ulsan National Institute for Science and Technology (UNIST) and Georgia Tech, captures carbon dioxide (CO2) and generates renewable electricity and useable hydrogen fuel from it. The team of researchers call the device a Hybrid Na-CO2 System.
The new device is essentially a large liquid battery.
The way the new carbon capture device works is a sodium metal anode is placed in an organic electrolyte and the cathode is contained in an aqueous solution. These two liquids are separated by a sodium (Na) Super Ionic Conductor (NASICON) membrane.
When carbon dioxide is added to the aqueous electrolyte, the liquid reacts with the cathode, increasing the acidity of the solution, which in turn produces electricity and generates hydrogen.
During testing, the research team discovered a CO2 conversion efficiency of 50%. They also found that the system had enough stability to run for more than 1,000 hours without damaging the electrodes.
Compared to other designs similar to the device, the Hybrid Na-CO2 System does not release any carbon dioxide as gas during normal operation. On the contrary, the remaining half of the CO2 was recovered from the electrolyte as baking soda.
It is unknown if these types of carbon capture systems can ever become viable large-scale technologies.
The researchers’ Hybrid Na-CO2 System is not the only carbon capture system that has been invented. While these systems do show a lot of promise for removing CO2 from the environment, whether or not these technologies will ever be useful at a large-scale is still unknown.
“Carbon capture, utilization, and sequestration (CCUS) technologies have recently received a great deal of attention for providing a pathway in dealing with global climate change,” says Professor Guntae Kim, lead researcher on the study, which was published in the journal iScience.
“The key to that technology is the easy conversion of chemically stable CO2 molecules to other materials. Our new system has solved this problem with CO2 dissolution mechanism,” Kim added, reported New Atlas.
The team of researchers believe that there is still room for improvement with each component of their new carbon capture design. Moreover, what could make their system stand out from others is its ability to produce renewable energy and hydrogen fuel.
Four Alabama school systems are closed today due to outbreaks of flu.
Albertville, Marshall County, Boaz and Guntersville are all closed Monday; Albertville was closed Friday; Marshall County, Boaz and Guntersville are also shutting down Tuesday.
In Boaz, absentee levels topped 10 percent on Friday.
“For the past week, Boaz City Schools have been monitoring and evaluating our absences daily and have been taking all necessary precautions to minimize illness,” officials said.
Cindy Saye Wigley, superintendent of Marshall County Schools, said in an announcement she hopes the four days of limited exposure to others will decrease the cases of flu in the system.
“We understand dismissing school creates a hardship on many of our parents; however, the health and safety of our students must continue to be our number one priority. At this time, the epidemic is not only having an impact on our students but also our staff, preventing us from effectively serving our students,” she said.
The systems said the extra days will also be used to sanitize the schools.
According to the Centers for Disease Control and Prevention, the influenza virus is considered widespread in at least 36 states, including Alabama. Flu can cause mild to severe illness and, at times, death, especially for the young and the elderly, as well as those with underlying health conditions. It is marked by a sudden onset and can include fever or chills, cough, sore throat, runny or stuffy nose and muscle and body aches.
- Get flu vaccine; it is not too late
- Stay at home if you have a fever
- Wash your hands
- Cover your cough and sneeze
- Clean and disinfect
MARSHALL COUNTY, AL (WAFF) - Marshall County schools will be closed Monday and Tuesday due to the high number of students and staff with the flu.
Guntersville City Schools closed Monday and Tuesday due to students and staff with the flu.
Fayetville City Schools are closed Monday due to students and staff with flu.
WASHINGTON — The Trump administration announced criminal charges against one of China's largest telecommunications companies Monday, a dramatic move that promises to ratchet up tensions on the eve of trade talks this week between the two countries.
Acting Attorney General Matthew Whitaker told reporters in Washington a pair of indictments had been unsealed in two separate cases. A Brooklyn grand jury charged Huawei as a company, and its chief financial officer, Wanzhou Meng, with money laundering, bank fraud, wire fraud and conspiracy. Huawei also was charged with conspiracy to obstruct justice.
A separate indictment accuses Huawei of stealing trade secrets from U.S. telecom firm T-Mobile. Those charges stem from a civil lawsuit filed by T-Mobile in 2014 over a robot called "Tappy," which was used in testing smartphones.
“Huawei intentionally conspired to steal intellectual property from an American company in an attempt to undermine the free and fair marketplace,” the Justice Department said in a statement.
Meng, who was arrested in Canada in December, is accused of orchestrating a scheme to violate U.S. sanctions on Iran. She is a daughter of Huawei's founder, Ren Zhengfei, who served as an engineer in the People's Liberation Army from 1974 to 1983. The U.S. is seeking her extradition.
"For over a decade, Huawei employed a strategy of lies and deceit to conduct and grow its business," said Richard Donoghue, U.S. attorney for the Eastern District of New York.
FBI Director Christopher Wray said the charges "lay bare Huawei's alleged blatant disregard for the laws of our country and standard global business practices."
Huawei (pronounced "Wah-way") is second only to Samsung as the world's largest supplier of smartphones and has been heavily involved around the world in building the next generation of cellphone networks, known as 5G. The Trump administration has been pushing other countries to exclude the firm from that work, citing security risks.
Last year, six different U.S. intelligence agencies urged Americans not to buy Huawei phones — which are virtually unavailable in the U.S. And President Donald Trump signed a law blocking federal government agencies from using most of the company's products.
MAY 2, 201801:40
The indictment against a leading Chinese company — and the harsh language senior Trump administration officials used to characterize its conduct — mark a sea change from the Obama administration, which was careful in how it characterized Chinese behavior, even as it secretly saw Chinese hackers siphoning U.S. intellectual property.
Separately, The Wall Street Journal reported on Jan. 16 that federal prosecutors are pursuing a criminal investigation of Huawei for allegedly stealing trade secrets from U.S. business partners, including technology used by T-Mobile to test smartphones.
The investigation grew in part out of civil lawsuits against Huawei, the Journal reported, including one in which a Seattle jury found Huawei liable for misappropriating robotic technology from T-Mobile's lab in Bellevue, Washington.
In 2012, the House intelligence committee published an investigation concluding that Huawei and another Chinese telecom giant, ZTE, posed a threat to U.S. national security. The firms are essentially arms of the Chinese government, the House concluded, which aid and abet Chinese espionage and could implant spyware that could allow the Chinese government to easily intercept communications or mount cyberattacks on critical infrastructure, such as nuclear plants and power grids.
The companies deny spying for China.
American intelligence officials have long been concerned that Chinese firms insert "back doors" in telecommunications equipment that facilitates eavesdropping. If Chinese companies dominate the construction of 5G networks worldwide, officials fear Chinese spies won't need back doors — they will have direct access to global telecommunications.
Still, U.S. officials have not put forward hard evidence linking Huawei to spying, and critics have pointed out that American spy agencies vacuum large swaths of private information — with court orders — from U.S. technology companies.
Talks aimed at resolving disputes over Chinese technology and trade policies are due to resume in Washington on Wednesday, led by the U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He.