Nvidia said it would miss out on about $500mn in revenue in the current quarter because of coronavirus lockdowns in China and the war in Ukraine, which contributed to a weaker outlook for the chipmaker than analysts anticipated.

The company said it expected to report $8.1bn in revenue, “plus or minus 2 per cent”, in its second quarter, owing to those issues in China and Russia. That is lower than the $8.45bn analysts forecast, according to a Refinitiv survey.

Nvidia also revealed revenues related to cryptocurrency mining evaporated in its first quarter. It said cryptocurrency mining processor revenue was “nominal” in its first quarter, compared to a year earlier. A sell-off in often volatile cryptocurrency markets has picked up steam in recent weeks, alongside a weeks-long slide in global equities.

That said, the cryptocurrency mining processor segment represents a small portion of the $8.3bn in total revenue Nvidia reported in its first quarter ended May 1, which beat Wall Street forecasts of $8.2bn.

Nvidia’s adjusted gross margin of 67.1 per cent slightly exceeded Wall Street expectations, but net income of $1.68bn came in below analysts’ expectations of $1.77bn.

Shares were down 7.4 per cent in after-hours trading on Wednesday, but had been down as much as 9.3 per cent.

Nvidia has been caught up in a broader stock market sell-off that has hit high-flying tech companies. Its shares are down more than 42 per cent so far in 2022, compared with a 16.5 per cent drop for the S&P 500 over the same period and a 27 per cent drop for the technology-focused Nasdaq Composite.

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