Nvidia skids, leading chips lower, as Q2 results hit by weak gaming sales
Justin Sullivan

Nvidia (NASDAQ:NVDA) led the semiconductor industry lower on Monday, falling nearly 6%, after the graphic chips designer preannounced weak second-quarter revenue due to a shortfall in gaming-related revenue and Intel (NASDAQ:INTC) unveiled a new offering. 
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.
Investment firm Craig Hallum downgraded Nvidia (NVDA) as a result of the shortfall, cutting estimates in the process. 
"With the stock trading above most peers today and above its historic ~30x [next twelve months] EPS estimate, we think it's too expensive and are moving to the sidelines for now," analyst Richard Shannon wrote, while lowering the firm's rating on Nvidia (NVDA) to hold from buy and cutting the price target to $180.
Nvidia (NVDA) shares fell more than 6% to end the day at $177.99, while Advanced Micro Devices (NASDAQ:AMD) and Marvell Technology (MRVL) both fell slightly more than 2%. 
Qualcomm (QCOM), Broadcom (AVGO), Texas Instruments (TXN), Analog Devices (ADI) and Micron Technology (MU) all fell following the Nvidia (NVDA) shortfall. 
Intel (INTC) hugged the flatline even as the company announced its Arc Pro GPU. The Santa Clara, California-based Intel (INTC) said the Arc Pro GPUs would be available "starting later this year" from its notebook and PC partners. 
On Monday, Nvidia (NVDA) was named one of the top 30 most attractive stocks at Citi, based on fundamentals, sentiment and valuation.
Analysts are largely upbeat on Nvidia (NVDA). It had an average rating of BUY from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates NVDA a HOLD.