Nvidia Corp lowered its fourth-quarter revenue forecast by half a billion due to weak demand for China gambling chips and lower than expected data center sales, pushing his shares at 15%.

This warning adds to concerns that the slowdown in the world's second-largest economy, exacerbated by an ongoing trade war with the United States, will continue to weigh on technology firms' sales and profits. Nvidia's caution has announced more challenges for the microchip sector after the mixed quarterly results of large companies last week.

"The fourth quarter was an extraordinary quarter, exceptionally turbulent and disappointing," said chairman and CEO Jensen Huang.

The company forecast revenues of $ 2.20 billion for the quarter ended January 27, down from its previous forecast of $ 2.70 billion (about Rs 19,000). Both figures were plus or minus 2 percent.

Analysts expected an average of $ 2.7 billion in sales, according to IBES 'Definitive data.

Nvidia shares fell 13.9 percent to 137.91 dollars (about 9,800 rupees) in morning trading.

Nvidia announced in November a turnover of $ 700 million below analysts' expectations, affected by unsold chips that accumulate with distributors and retailers after the evaporation of the mining boom cryptocurrency.

"This additional $ 500 million, in addition to the initial $ 700 million, is very disappointing for investors," said Kinngai Chan, an analyst at Summit Insights Group.

Data center sales, which account for nearly one-third of Nvidia's sales, were disappointing as several transactions failed in the last month of the quarter.

"Customers have taken a more cautious approach," the company said.

This echoes the sentiment of rival Intel, which announced last week lower than expected sales in the fourth quarter and forecasts for the current quarter.

Nvidia said sales of its next-generation Turing graphics chips, launched last August, also fell short of expectations as some customers delayed their purchases.

Turing chip technology helps game creators create real-time movie-quality visual effects by simulating the physical behavior of light.

Nvidia is forecasting a gross margin of 55%, plus or minus 100 basis points, based on GAAP for the fourth quarter, its worst performance in at least three years.

"They probably have to eliminate what is not selling and hitting their margins," said Chaim Siegel, an analyst at Elazar Advisors.

Nvidia will release its fourth quarter results on February 14.

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