NVIDIA’s Second Quarter Revenue Down By 33% Year on Year
NVIDIA has published their Preliminary Financial Results for Second Quarter (Q2) Fiscal 2023. To our surprise, team green has suffered major a hit quarter on quarter due to lower GeForce GPU sales.
The giant originally planned for a revenue of $8.10B (±2%), however, initial results say otherwise. NVIDIA reports a revenue of $6.70B during the second fiscal quarter amounting for a decrease of around 25%.
In the gaming segment, NVIDIA suffered losses making just $2.2B which is 44% and 33% less than the previous quarter and year respectively. Such a hit in profit is not to be taken lightly because even Jensen (CEO of NVIDIA) had his say on it.
Our gaming product sell-through projections declined significantly as the quarter progressed, As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory.
— Jensen Huang.
This is exactly why you are seeing GPU prices plummet to their lowest now. Basically, during Covid-19, NVIDIA and other giants were seeing artifical gains in profit due to the insane pricing. Now that the world is about to undergo a recession (possibly) with inflation rates shooting through the sky, many companies will suffer.
Expect lower prices as time goes on (Sorry Jay). It is highly possibly that NVIDIA may end up revising their RTX 4000 GPU prices but that’s just a mere speculation.
