Nvidia's Disappointing Forecast Adds to Chip Concerns

NVIDIA's third-quarter revenue is projected to be $5.9 billion, falling short of the $6.9 billion expected by analysts. This follows a warning from NVIDIA about declining sales due to weakening demand for gaming computers and challenging market conditions. PC shipments are also expected to decrease by 15-20% compared to last year. Despite these challenges, the demand for niche chips remains high, and companies like Applied Materials are struggling to meet equipment demands due to chip shortages. This indicates ongoing supply issues, although chip makers are likely to continue expanding capacity into the next year.

What is the expected revenue for NVIDIA in the third quarter?

• 6.9 billion U.S. dollars

• 5.9 billion U.S. dollars

• 7.5 billion U.S. dollars

• 5.0 billion U.S. dollars

What is one reason for NVIDIA's lower sales forecast?

• Increased demand for gaming computers

• Weakening demand for gaming computers

• Higher production costs

• Strong competition from other chip makers

By what percentage are PC shipments expected to decline this year?

• 20 to 25%

• 10 to 15%

• 5 to 10%

• 15 to 20%

Which company is mentioned as struggling to meet equipment demands due to chip shortages?

• Samsung

• Applied Materials

• AMD

• Intel

What is a potential outcome for chip makers due to the ongoing shortage?

• Increased competition

• Decreased revenue

• Significant financial gains

• Reduced production capacity