NVIDIA preliminary financial results for Q2 fiscal 2023: Gaming division revenue plummets

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Nvidia today announced selected preliminary financial results for the second quarter ended July 31, 2022. Generally, there is a large difference between the revenue of the general company and the expected value, and an early warning may be issued. Recently, a number of industry giants have released financial reports one after another, and the general revenue has declined, or the revenue forecast for this year has been lowered.

Nvidia said its preliminary estimate of revenue for the second quarter of fiscal 2023 was $6.7 billion, well below expectations of $8.1 billion. Among them, the estimated revenue of the game business is $2.04 billion, down 44% month-on-month and 33% year-on-year, and there is a big gap from the original expectation of $3.12 billion. The data center business is expected to generate $3.81 billion in revenue, an increase of 1% from the previous quarter and a year-on-year increase of 61%, and the performance is basically similar to the previous quarter. Visualization business revenue is expected to be around $500 million, down 4% month-on-month and 20% year-on-year. The automotive business is expected to report revenue of $220 million, up 59% sequentially and up 44% year over year.

“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.“NVIDIA has excellent products and position driving large and growing markets. As we navigate these challenges, we remain focused on the once-in-a-generation opportunity to reinvent computing for the era of AI,” he said.

According to the original plan, Nvidia will soon release GeForce RTX 40 series graphics cards based on the Ada Lovelace architecture. However, there have been previous reports that NVIDIA’s partners have a large inventory of GeForce RTX 30 series graphics cards, which will take more time to digest, which may further cut prices and force NVIDIA to delay the release of new graphics cards.
Affected by this news, Nvidia fell after the opening of U.S. stocks on August 8, with a drop of more than 9% at one point, and finally closed down 6.3%.

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