August 9, 2022
Nvidia has warned that its second-quarter revenue would fall 19% from the previous quarter, citing weakness in the company’s gaming business, which is a major source of revenue.
Nvidia reported preliminary results for the second quarter and is expected to report total revenue of about $6.70 billion on August 24. Analysts had projected revenue of $8.1 billion, with a contribution from gaming at $3.12 billion.
According to preliminary results, Nvidia gaming unit’s revenue which includes sales of high-end graphics cards for desktops and laptops, fell 44% quarter-on-quarter to $2.04 billion.
Nvidia increased the supply of processors for cryptocurrencies, which generated about $266 million in the second quarter of 2021.
Data Center revenue hit a record levels, but fell short of estimates, mainly due to supply chain disruptions. Nvidia added that quarterly results will include charges of $1.32 billion due to excess inventory and obligations in anticipation of demand.
Nvidia is an American technology company that develops graphics processors, GPUs, application programming interface (APIs) for data science and high-performance computing.
The sources for this piece include an article in Reuters.
