Nvidia plunges 8% after preannouncing weak Q2 sales
Justin Sullivan

Nvidia (NASDAQ:NVDA) shares plunged 8% on Monday after the graphics chipmaker preannounced weaker-than-expected second-quarter revenue driven mostly by what the company said was disappointing gaming sales. 
For the period ending July 31, Nvidia (NVDA) said it generated $6.7B in revenue, down 19% from a year ago, compared to expectations of $8.1B.
The company said its gaming business was the main culprit of the shortfall, as gaming revenue fell 44% sequentially and 33% year-over-year to $2.04B. Conversely, data center revenue rose 1% sequentially and 61% year-over-year to $3.81B. 
"Our gaming product sell-through projections declined significantly as the quarter progressed," said Nvidia (NVDA) Chief Executive Jensen Huang, in a statement. "As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our gaming partners to adjust channel prices and inventory."
The company added that it slowed operating expenses during the quarter, but would continue with its stock buyback program.
Advanced Micro Devices (AMD) and Marvell Technology (MRVL) both fell roughly 2% in sympathy after the weak results from Nvidia (NVDA). 
On Monday, Nvidia (NVDA) was named one of the top 30 most attractive stocks at Citi, based on fundamentals, sentiment and valuation.