Applied Materials, Inc. AMAT shares are trading lower by 2.80% to $106.55 Monday afternoon in sympathy with NVIDIA Corporation NVDA after the company issued preliminary second-quarter revenue guidance below estimates and cited weaker gaming revenue.
Nvidia sees preliminary second quarter revenue of $6.70 billion versus the previous outlook of $8.10 billion.
The company says the shortfall relative to the May revenue outlook of $8.10 billion was primarily attributable to lower sell-in of Gaming products reflecting a reduction in channel partner sales likely due to macroeconomic headwinds.
Nvidia added that in addition to reducing sell-in, the company implemented pricing programs with channel partners to reflect challenging market conditions that are expected to persist into the third quarter.
"Our gaming product sell-through projections declined significantly as the quarter progressed," said Jensen Huang, founder and CEO of NVIDIA. "As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory.
According to data from Benzinga Pro, Applied Materials has a 52-week high of $167.06 and a 52-week low of $82.67.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.