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Chip designer NVIDIA Corporation reported its earnings for the fourth quarter of fiscal year 2023 earlier today. The quarter saw the company post $6 billion in revenue and $1.4 billion in net income, with sales for the full year remaining flat annually. A breakdown of the results showed that it looks as if NVIDIA's bread and butter, its gaming division, might finally have bottomed out in the previous quarter, as it posted a 16% sequential growth. At the same time, Datacenter remained NVIDIA's largest segment, with its $3.6 billion in net sales marking an 11% annual growth but dropping by 6% sequentially as spending in the sector slows down in an inflationary environment.
The current big theme across the semiconductor industry has been a slowdown in sales as excessive inventory buildup with retailers and partners led to fewer shipments from the chip designers. This mismatch is due to optimistic ordering in the wake of the coronavirus pandemic that saw high demand for computing products; and companies over ordering to meet the new orders. However, these orders were based on forecasts made from data from 2021, and as 2022 rolled in, a slowdown due to high inflation led to excessive products in the market.
NVIDIA, like AMD, is dealing with this problem by reducing the products it is shipping to its channel partners to aid a process called 'inventory digestion.' This digestion is causing the firm's Gaming revenues to drop, according to its chief financial officer Ms. Colette Kress. NVIDIA's latest earnings report for its fourth quarter and full fiscal year 2023 saw it post $1.8 billon and
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