Nvidia Chops Revenue Guidance For FY Q2; Stock Tumbles

Nvidia (NVDA) shares are trading lower after the company cut its revenue guidance for FY Q2 ending August 1.

For the quarter, the company now sees revenue of $800 million to $820 million, down from a previous projection of $950 million to $970 million.

“The revenue shortfall occurred primarily in the consumer GPU business, resulting from increased memory costs and economic weakness in Europe and China,” the company said in a statement. “The increased solution cost of discrete GPUs led to a greater-than-expected shift to lower-priced GPUs and PCs with integrated graphics.”

In late trading, NVDA is down 70 cents, or 6.9%, to $9.43.