Nvidia plunges as Q2 forecast misses expectations on Russia, China issues
Nvidia (NASDAQ:NVDA) shares dropped sharply in extended trading on Wednesday after the chipmaker reported strong first-quarter results but issued weak guidance for the upcoming quarter.
However, the Santa Clara, California-based company said it expects second-quarter sales to be $8.1 billion, well below the $8.44 billion analysts were expecting. Nvidia (NVDA) attributed the shortfall to roughly a $500 million decline due to Russia's invasion of Ukraine and COVID-related lockdowns in China.
Nvidia (NVDA) shares plunged more than 9% to $154.02 on back of the results. Competitor Advanced Micro Devices (AMD) followed suit, falling more than 2.5% to $90.09 after the report.
In addition, Nvidia (NVDA) said it expects GAAP and non-GAAP gross margins to be 65.1% and 67.1%, respectively, for the period, plus or minus 50 basis points.
Operating expenses are expected to be $2.46 billion on a GAAP basis and $1.75 billion on a non-GAAP basis.
For the period ending May 1, the Jensen Huang-led Nvidia (NVDA) said it earned $1.36 per share on $8.29 billion in sales, up 46% year-over-year, thanks to "record revenue in Data Center and Gaming."
A consensus of Wall Street analysts expected Nvidia (NVDA) to earn $1.30 per share on $8.09 billion in sales. 
During the quarter, Nvidia (NVDA) generated $3.75 billion in data center-related revenue, up 83% year-over-year and 15% sequentially. It also collected $3.62 billion in gaming-related sales, up 31% year-over-year.
Professional visualization revenue was also strong, rising 67% year-over-year to come in at $622 million during the period.
The lone weak spot was automotive revenue, at $138 million in sales, down 10% year-over-year, but up 10% sequentially.
Nvidia (NVDA) will hold a conference call at 5 p.m. EST to discuss the results.
Earlier this month, Morgan Stanley restarted coverage on Nvidia (NVDA), calling it "one of the best growth names" in the semiconductor space.




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