$NVDA Cuts Revenue Forecast on Gaming Downturn

Bloomberg headline: Nvidia Tumbles After PC Industry Slump Crushes Revenue

Sub-headline bullets:

:pushpin: PC-component makers suffering steep fall off in demand

:pushpin: Nvidia graphics chips are staple of high-end gaming computers

https://archive.ph/J0671

Nvidia Corp.’s quarterly revenue missed its projections by more than $1 billion, surprising investors and piling on more evidence that demand for electronic components is drying up quickly after a two-year boom.

Fiscal second-quarter revenue was about $6.7 billion, down from its earlier projection of $8.1 billion, the company said Monday in a statement. Shares of the most valuable publicly traded chipmaker fell 6.3% to $177.93, their worst decline in nearly two months, and the biggest drag on the Nasdaq 100 Index.

Nvidia’s report underscored a squeeze rippling across the industry: Declining consumer spending, growing inflation and a push to return to offices have reduced purchases of personal computers. Intel Corp., Western Digital Corp. and other companies that depend on PC sales have reported sharp declines in demand for their products.

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Note: $NVDA will give appraisals and projections for current Q3 on 24 AUG 22 according to this article. Meanwhile, here’s more on the earnings report:

https://archive.ph/J0671

Gaming revenue in the second quarter fell 44% from the previous quarter and 33% from a year earlier to $2.04 billion, Nvidia said.

Nvidia’s ascent to the top of the chip industry by market valuation has been partially driven by the explosive growth of its data center business. Owners of large cloud data centers are increasingly using its graphics chips for artificial intelligence computing. While revenue from that division increased 61% to $3.81 billion, it fell short of Nvidia’s projections, the company said. Performance was “impacted by supply chain disruptions.”

The quarterly results also will include about $1.32 billion of charges, “primarily for inventory and related reserves, based on revised expectations of future demand,” Nvidia said.