Gaming Revenue Falls 33% As Nvidia Fails On Q2 Results
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"We are navigating our supply chain transitions in a challenging macro environment, and we will get through this."
Falling Gaming Revenues
The $2.04 billion in gaming revenue for Nvidia was a 33% decrease from the previous year. Concerning the first quarter, that indicates a 44% decrease.
On a conference call with investors today, Nvidia Chief Financial Officer Colette Kress stated the difficult market circumstances of the gaming company in the second quarter. Nvidia had been anticipating a decline in gaming revenue since May as a result of factors like the conflict in Ukraine and COVID-19 lockdowns in China. Kress stated,
"As noted last quarter, we had expected cryptocurrency mining to make a diminishing contribution to gaming demand; we are unable to accurately quantify the extent to which reduced crypto mining contributed to the decline in gaming demand."
The general revenue for the second quarter was $6.7 billion, an increase of 3% over the same time last year. Its net earnings were $656 million, a 72% decrease from the previous year. That was $6.7 billion in overall sales corresponds to the estimate Nvidia presented in a preliminary earnings report on August 8.
Fall of Professional Visualization Segment
Nvidia's professional visualization sector sales fell 4% in the second quarter compared to the prior year. This section covers Nvidia's metaverse initiatives, including a collaboration with Siemens to create an "industrial metaverse" for the manufacturing sector. The company has also recently disclosed new metaverse-related technologies.
Huang stated that Nvidia intends to make "breakthrough" announcements during its GTC conference, planned for September 19–22.
Nvidia is anticipating profit reductions in the gaming and professional visualization sectors to persist in the third quarter. The firm expects third-quarter revenues to be within 2% of $5.9 billion.