November 1, 2024

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Nvidia (NVDA) earnings for the second quarter of 2023

Nvidia (NVDA) earnings for the second quarter of 2023

Jin-Hsun Huang, President and CEO of Nvidia Corp. , speaks during the company event at the Mobile World Congress Americas in Los Angeles on October 21, 2019.

Patrick T. Fallon | Bloomberg | Getty Images

nvidia It reported second-quarter earnings that missed Wall Street expectations for revenue and earnings per share.

The report is in line with Nvidia’s initial earnings two weeks ago. Chipmaker warned It will miss Wall Street estimates and that growth has slowed significantly due to disappointing game sales driven by macroeconomic conditions. It also warned that its gross margin would decrease.

Nvidia lagged behind on revenue but Refinitiv’s estimates were unchanged after the company cautioned against the guidance and said it expected to post $6.7 billion in the quarter. Nvidia stock is down more than 2% in extended trading.

Here’s how Nvidia performed against the Refinitiv consensus estimates:

  • EPS: $0.51 adjusted vs. $1.26 expected
  • he won: $6.7 billion vs. $8.10 billion forecast

The chipmaker said it expects sales of $5.9 billion in the third quarter of the fiscal year, versus Refinitiv’s consensus estimate of $6.95 billion.

Nvidia’s gaming division revenue fell 33% year over year to $2.04 billion. Nvidia said the error was caused by declining sales of its gaming products, which are primarily graphics cards for PCs. Nvidia said it will change prices with retailers to deal with “challenging market conditions” for the industry, which it said it expects to continue through the current quarter.

The company’s data center performed slightly better. It rose 61% year-over-year to $3.8 billion, driven by what the company calls “super” customers, large cloud service providers.

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Nvidia also has a few smaller lines of business. The professional visualization business, which sells graphics chips for enterprise use, fell 4% annually to $496 million. Cars are still small, although they increased 45% year-over-year to $220 million. Nvidia said revenue from its dedicated cryptocurrency mining chips, CMP, was “token,” contributing to a 66% annual decline in OEMs and another category.

Nvidia stock is down over 42% year-to-date. It’s been a dear pandemic, rising exponentially as working from home has led to the purchase of graphics cards and server chips, overcharging Nvidia’s business and driving 61% revenue growth in fiscal 2022.

In May, Nvidia He said Employment will slow in the face of macroeconomic challenges.

Limited view of cryptocurrency mining demand

Nvidia’s success in the past couple of years is largely attributed to the quality of its latest generation graphics cards, which have been in great demand for PC gaming during the pandemic.

But questions remain as to whether Nvidia’s growth has been driven in part by crypto miners, who love Nvidia graphics cards because they are so efficient at mining Ethereum.

in May, Nvidia said It will pay $5.5 million as part of a settlement with the Securities and Exchange Commission over how it told investors how cryptocurrency was fueling demand for its graphics cards in 2017. Since then, Nvidia has said it has no view of how cryptocurrency will affect demand for its products, Even with the price of cryptocurrency dropping this year.

“Volatile volatility in the cryptocurrency market – such as declines in cryptocurrency prices or changes in the way transactions are verified, including Proof of Work or Proof of Stake – has impacted the past, and could affect the future, demand for our products and our capability,” said Nvidia’s Chief Financial Officer. Colette Kress in a statement “to be appreciated.”

“We are unable to accurately quantify the extent to which the decline in cryptocurrency mining has contributed to the decline in demand for games,” Chris continued.