Nvidia, confirmation arrives: bad Q2, profits down by 72%.  The miners bought a few video cards

Nvidia, confirmation arrives: bad Q2, profits down by 72%. The miners bought a few video cards

In recent days, Nvidia had announced the preliminary results of the second fiscal quarter of 2023, which ended in June 2022. Results that seemed to photograph a substantial decline in profits, with the sale of video cards in the dock. The publication of the tax data confirmed the forecasts: Nvidia’s Q2 2023 was bad, with soaring profits and a vertical collapse of the gaming sector.

Let’s start by pointing out that Nvidia’s overall turnover was $ 6.7 billion. A slight improvement (+ 3%) compared to the same period last year, but a clear worsening (-19%) compared to Q1 2023 which ended in March.

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A negative impact is the contraction in profits: Nvidia posted a net profit of $ 656 million, which is a 72% year-over-year and 59% decline from last quarter..

The Gaming division collapses (-33% year on year). The data of the professional division are also ugly

On the dock, as mentioned, the sales results of video cards and the gaming division. This sector had a turnover of 2.04 billion dollars, a decline of 33% year-over-year and 44% from last quarter.

Declines also in the professional sector, even if decidedly more contained: the division Professional Visualization reported revenue of $ 496 million, down 4% year-over-year and 20% compared to the previous quarter.

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The decline was sharper than expected“Comments Colette Kress, CFO of Nvidia”The contraction winds blowing on the world market have caused a sudden and sudden slowdown in consumer demand“.

Kress also has blamed the drop in the purchase of graphics cards for mining: “As we noted last quarter, we expected cryptocurrency mining to contribute less and less to the demand of the gaming sector; but we are unable to accurately quantify to what extent the reduction in cryptocurrency mining contributed to the decline in demand. “

On the other hand, the data regarding the Data Center and the Automotive sector were positive

However, the data regarding the Data Center and the Automotive sector are excellent: the first recorded a turnover of 3.81 billion dollars (+ 61% year on year and + 1% on a quarterly basis), while the automotive turnover reached 220 million (+ 45% year on year and + 59% on a quarterly basis).

As for the future prospects, a very difficult third quarter is also expected: the forecasts for Q3 2023 – it will close in September 2022 – speak of a turnover of 5.9 billion, which would mean -11.94% compared to Q2 2023.

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Revenues from the Gaming and Professional Visualization divisions will continue to decline, because OEMs and channel partners will reduce the level of their inventories, both in response to demand and to prepare for the arrival of the next generation of Nvidia products. These losses will be partially offset by the growth of the Data Center and Automotive divisions”Writes the company.

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