Live News: Nvidia blames China shutdowns and Russian war for poor revenue forecast

Nvidia said it will lose about $500 million in revenue in the current quarter due to the coronavirus shutdown in China and the war in Ukraine, which has contributed to a weaker outlook for the chip industry than analysts had expected.

The company said it expected $8.1 billion in revenue to be “plus or minus 2 percent” in the second quarter, due to those problems in China and Russia. That’s less than analysts’ expectations of $8.45 billion, according to a Refinitiv survey.

Nvidia also revealed that revenue related to cryptocurrency mining evaporated in the first quarter. She said that cryptocurrency mining processor revenue was “token” in the first quarter, compared to the previous year. The selloff in the often volatile cryptocurrency markets has gained momentum in recent weeks, along with a weeks-long decline in global stocks.

However, the crypto-mining processor segment represented a small portion of the $8.3 billion in total Nvidia revenue it reported in the first quarter ending May 1, which beat Wall Street expectations of $8.2 billion.

Nvidia’s adjusted gross margin of 67.1 percent slightly exceeded Wall Street expectations, but net income of $1.68 billion came in short of analysts’ expectations of $1.77 billion.

Shares fell 7.4 percent in after-hours trading on Wednesday, but fell as much as 9.3 percent.

Nvidia was hit by a massive stock market selloff that hit high-tech companies flying. Its shares are down more than 42 percent so far in 2022, compared to a 16.5 percent drop for the S&P 500 over the same period and a 27 percent drop for the technology-focused Nasdaq Composite.