Apparently, things went significantly worse than expected in the quarter ended July 31, for NVIDIA. In fact, the well-known Californian company has published preliminary results for the period, which now see a turnover of “only” 6.70 billion dollarscompared to the 8.10 billion previously forecast, with a decrease of 21%. Apparently, the main cause is attributable to the gaming departmentaccording to when declared by NVIDIA itself.
After all, even today the gaming division is the real workhorse of the company, despite its commitment in other sectors, such as data centers, AI, automotive and so on. As you can see from the graph below, revenues fell by 44% compared to the previous quarter and by 33% compared to the previous year. Fortunately, NVIDIA’s diversification has been able to effectively counter the significant contraction in the gaming market, especially thanks to the growing division of data center and automotive products.
Jansen HuangCEO of NVIDIA, commented on the situation with these words:
Our gaming product sales forecasts dropped significantly over the quarter. As we expect the macro conditions affecting the sell-through to continue, we have taken action with our partners to adjust prices and inventories.
In addition, the company’s CFO complained about the negative financial effect of the long-term purchase deals, which NVIDIA entered into during the 2021 component shortage.
As we have reported previously, finally the price of the video cards of the GeForce RTX 30 range has dropped markedly, so as to reach the recommended one (and often be even lower). It therefore seems that NVIDIA itself, as well as its partners, are doing everything to get rid of the stocks of Ampere products in view of the launch of the next GeForce RTX 40, based on the Ada Lovelace architecture.