Nvidia Q3 results may not escape the decline in demand-side pressure

$NVIDIA(NVDA.US)$ NVIDIA announced its fiscal year 2023 third quarter earnings. The market expects Nvidia's Q3 revenue to be $5.84 billion, compared to $7.103 billion a year ago, and earnings per share to be $0.71, compared to $1.17 a year ago.

Recently, the industry's largest companies, including Micron Technology $Micron Technology(MU.US)$ and Samsung Electronics, have issued a series of warnings about semiconductor demand, which is not good news for the chip industry's prospects.

In fact, Wall Street analysts are cutting earnings forecasts for these technology stocks at the fastest pace since 2008, due to the growing risk of recession and clear signs that market demand for these chips is falling fast. According to the data, over the past 12 months, analysts have cut the company's Q3 earnings per share forecast from $1.21 to $0.71, a 41.7% cut.

And, Intel $Intel(INTC.US)$ and other companies that rely on PC sales have also warned of a sharp drop in market demand for their products. In such a context, NVIDIA may find it difficult to avoid this weak trend.

NVIDIA's graphics chips are still a staple of high-end PCs, providing users with a realistic gaming experience. However, most major gaming companies have reported a decline in sales or a weak outlook this year.

Another impact NVIDIA may also face is a significant drop in demand for its external graphics cards. External graphics cards are a key part of cryptocurrency mining systems, and as the environment in the cryptocurrency industry continues to deteriorate, this revenue stream will make the company's bottom line even more vulnerable.

Given the industry trends, NVIDIA's latest quarterly earnings are expected to be weak.