Nvidia says coronavirus will cost $ 100 million in first quarter

In the wake of the coronavirus epidemic, the group Nvidia redone its accounts and reduced its forecast of results for the first quarter of 2020. If it had a good end of the year with a 41% increase in its turnover (3.11 billion dollars) compared to the ‘previous year, he was cautious for the start of the year.

During an interview at Venturebeat, he indicated that the impact of the coronavirus on its activity would be of the order of $ 100 million, due to the brutal brake on the Chinese economy.

At the same time, its CEO Jensen Huang notes that it could be worse, a good part of its subcontractors and its production being in fact in Taiwan and still being relatively spared.

The situation is nevertheless closely monitored and the confinement of part of the Chinese population at home obviously does not do the business of the firm regarding the purchase of new equipment.

Cancellation of the fair MWC 2020 of Barcelona because of the coronavirus, a first in 34 editions, does not allow either to demonstrate the new products of the brand and to conclude commercial contracts, which also contributes to the cautious forecast for the beginning of the year.

The CEO said he was confident in the adoption of its RTX graphics cards and its ray tracing as the era of cloud gaming opens with the launch of the service GeForce Now.

Nvidia mother also has a partnership in this sense with the Chinese Tencent but notes that it is a long-term effort insofar as it takes a quality connection to be able to fully benefit from it.

Excluding gaming,artificial intelligence remains a major and strategic area for the group, and a powerful growth engine thanks to its accelerators for data centers.

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