NVIDIA Q2 revenue misses projections due to weaker GeForce sales, down 44% Q/Q
NVIDIA published its preliminary second quarter result showing lower sales than projected.
The company revenue from gaming market has decreased by 44% quarter to quarter, which is described by NVIDIA CEO as ‘significant decline’. The company has previously projected 8.1B USD revenue for the quarter, but the preliminary results show $1.4B lower revenue at $6.7B.
The gaming platform records $2.04B revenue which is 33% down year to year. NVIDIA is now working with partners to adjust prices and inventory which should improve sell-through in the third quarter.
Our gaming product sell-through projections declined significantly as the quarter progressed, As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory.
— Jensen Huang, founder and CEO of NVIDIA.
In late Q3 it is expected that NVIDIA will reveal its plans for the next-gen GPU series, namely the GeForce RTX 40. It is believed that due to weaker sales of RTX 30 series and excess inventory, NVIDIA was forced to abandon its plans for early release of next-gen.
Weaker sales are likely the results of cryptocurrency crash and post-COVID market with lower demand of PC hardware.
| NVIDIA Q2 FY23 Preliminary Financial Results | |||
|---|---|---|---|
| Revenue by Market Platform ($ in billions) | Preliminary Results | Q/Q | Y/Y |
| Gaming | $2.04 | Down 44% | Down 33% |
| Data Center | 3.81 | Up 1% | Up 61% |
| Professional Visualization | 0.50 | Down 20% | Down 4% |
| Automotive | 0.22 | Up 59% | Up 45% |
| OEM and Other | 0.13 | Down 12% | Down 66% |
| Total | $6.70 | Down 19% | Up 3% |
Source: NVIDIA