Semiconductor and microchip company Nvidia’s (NVDA) second quarter earnings missed Wall
Street expectations on the top and bottom lines due to softening demand in the video game
market.
Nvidia reported earnings per share of $0.51, which was 60% lower than the $1.26 expected on
Wall Street, according to Refinitiv data. The company’s revenue came in at $6.70 billion, which
was 17% below the $8.10 billion that analysts had forecast.
The Q2 print was in line with a pre-announcement Nvidia made two weeks ago, where the
Silicon Valley-based chipmaker warned that it would miss Wall Street estimates and that growth
had slowed because of slow gaming sales.
Looking ahead, Nvidia forecast $5.9 billion in sales in the current third quarter, which was also
lower than the consensus estimates of $6.95 billion among analysts who cover the company.
Revenue in Nvidia’s gaming department sank 33% year-over-year to $2.04 billion in Q2. Nvidia
said that the miss was because of lower sales of its gaming products, which are mostly graphics
cards used in personal computers.
Nvidia said it would adjust prices with its retailers to address “challenging market conditions” for
the industry that it said is expected to persist through year’s end.
The company’s data center business performed better, rising 61% on an annual basis to $3.8
billion. Chips sold to automotive manufacturers increased 45% year-over-year to $220 million.
However, revenue from Nvidia’s cryptocurrency mining chips fell 66% during the April through
June period.
Nvidia’s stock is down 43% this year at $172.22 U.S. per share.
Related Stories
