Nvidia has experienced weaker sales of its RTX-generation of Turing graphics cards than it expected with its original cost estimations, with CEO Jensen Huang describing it as a "punch in the gut" in a chat with investors. He also revealed that Nvidia's revenue was expected to be $2.2 billion in the fourth quarter of the year, which while hardly poor, is half a billion dollars less than was originally estimated.
This downturn has been blamed more on cryptocurrency values continuing to fall than anything else, but you have to imagine the inflated pricing, underwhelming performance enhancements, and big drive towards ray tracing and DLSS that haven't really materialized in more than a couple of games, played a part in weaker consumer interest in Turing too.
The end result is an Nvidia stock price that has fallen a further 14 percent in the past 24 hours, and an overall outlook for the company which is far weaker than it was just a few days ago. Nvidia isn't about to shut up shop or change much of anything because of this news, but it does see it on weaker footing than its been at any point in the past few years.
"These products deliver a revolutionary leap in performance and innovation with real-time ray tracing and AI, but some customers may have delayed their purchase while waiting for lower price points and further demonstrations of RTX technology in actual games," Nvidia said in a surprisingly lucid comment, via PCGamer.
That's something the company is looking to address in the near future, though. It recently debuted the $350 RTX 2060 and there are rumors that it will have a GTX 1660 Ti and 1660 available within the next couple of months for significantly less.