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Nvidia Gives Weak Forecast, Adding to Concerns of Chip Slump

  • Prepayments and inventory buildup take toll on earnings
  • Shares fall in extended trading following announcement
Updated on

Nvidia Corp., which warned earlier this month that its sales were slipping, gave a disappointing forecast for the current period that added to signs of weakness in the semiconductor industry. 

Fiscal third-quarter revenue will be about $5.9 billion, the company said late Wednesday in a statement. That compares with an average analyst estimate of $6.92 billion. Gross margin, the percentage of sales remaining after deducting the cost of production, will be 65%, minus certain items.