Nvidia earnings take a hit as game graphics sales weaken
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Nvidia reported earnings for the second fiscal quarter ended July 31 amid a slowdown in PC and gaming sales. The financial results for revenues met diminished expectations which were set after Nvidia warned that its quarterly results would be weaker than expected.
The company’s business in game graphics and AI chips saw huge growth in 2020 and 2021 during the pandemic, but now things are slowing down in gaming. In after-hours trading, Nvidia’s stock is down 3% to $167.58 a share.
Revenues came in at $6.7 billion, up 3% from a year ago and down 19% from the previous quarter. Analysts expected revenue of $6.7 billion versus $6.5 billion last year. Earnings per share came in at 26 cents on a GAAP basis, compared to expectations of 35 cents a share.
For the datacenter, analysts expected $3.8 billion versus $24 billion last year. And for gaming they expected $2.0 billion versus $3.1 billion last year.
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Nvidia released its preliminary earnings on August 8, when it warned investors that the company was going to miss on its own expectations for the quarter as gaming sales weakened. Nvidia saw softness due to the war in Ukraine and a slowdown in China, with macroeconomic slowdowns around the world affecting consumer demand in a negative way. The company said it is unable to determine what impact slipping demand for crypto mining had on the lower revenues.
GAAP earnings per diluted share for the quarter were
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