NVIDIA earlier reported its second quarter 2022 (May-July, Q2 FY23) financial report with total revenue of $6.7 billion, $1.4 billion less than expected, mainly due to a 44% decline in gaming GPU-related performance.
Nvidia’s game business fell 44% in the second quarter of 2022, and the channel will adjust prices to ease inventory pressure.
NVIDIA earlier reported its second quarter 2022 (May-July, Q2 FY23) financial report with total revenue of $6.7 billion, $1.4 billion less than expected, mainly due to a 44% decline in gaming GPU-related performance.
NVIDIA Q2 FY23 Preliminary Results
Nvidia’s gaming business posted revenue of $2.04 billion in the second quarter of 2022, down 44% from the previous quarter and down 33% from the same period last year. However, the data center business reported revenue of $3.81 billion in the quarter, up 1 percent from the previous quarter but up 61 percent from a year earlier. These two businesses are currently NVIDIA’s largest source of revenue, accounting for more than 87% of total revenue.
Apparently, with the collapse of the cryptocurrency market, not only has the demand for graphics cards collapsed, but some miners have even started selling graphics cards previously used for mining, leading to a sharp drop in Nvidia’s gaming GPU revenue.
Chief Financial Officer Colette Kress said the huge operating expenses (expenses) this quarter were mainly due to long-term purchase commitments made during previous component shortages, after all, as the pandemic greatly boosted consumption of electronics. Going forward, it plans to slow the growth of operating costs, strengthen management profitability and continue share buybacks.
CEO Huang Renxen believes the reason for declining returns comes from macroeconomic intervention, after all, the US is facing a super-high inflation rate. NVIDIA is working with channel partners to adjust product prices to the current low demand and high inventory, he said.
