A quarter of decline for NVIDIA, thanks to sales of GeForce video cards
NVIDIA has released preliminary information on its own financial results for the second quarter of fiscal 2023a period that covers the months from May to July 2022. Pending the definitive data, which will be released at the end of August, the American company has put its hands on, explaining that it expects a significant decrease in turnover compared to what was initially expected.
Let’s talk about an expected figure of 6.70 billion dollars against an estimate, made last May, which spoke of a turnover of 8.1 billion dollars. A drop in sales of 21% which is very important and which is explained by the detailed data provided by NVDIA: this is the segment related to gamingwho saw a sales contraction of 33% compared to the same period last year and 44% based on the previous quarter.
The data center sales segment maintained its revenue levelwith a sequential growth of 1% and a clear leap forward of 61% compared to the same period of 2021. Sales of solutions for the professional graphics workstation marketwith a reduction in turnover of 20% compared to the previous quarter and of 4% taking Q2 of the previous fiscal year as a reference, while the automotive solutions sector is growing although it does not weigh in absolute value in order to significantly affect the result NVIDIA overall.
The company’s CEO, Jensen Huang, communicated the need on the part of video card manufacturing partners to adjust the retail prices of their solutions. This will lead to reductions in the final prices charged to users, which can thus help NVIDIA and partners to reduce inventory of cards in stock, paving the way for the debut of the new GeForce RTX 4000 solutions. What will be the economic impact of all this for NVIDIA will be to be seen, in the results for the third quarter of fiscal 2023 which has just begun.
In any case, the company’s fundamentals remain positive, how well outlined is the direction of future development. It is the macroeconomic dynamics of the moment that have strongly impacted the profitability of NVIDIA in the gaming sector, with a difficulty in terms of turnover that should be progressively overcome in the coming quarters.