NVIDIA’s gaming business is in bad shape, and the situation is benefitting AMD, which is increasingly relying on its GPUs to support its growth. But NVIDIA can count on other sectors to ensure it remains in good financial health.
NVIDIA has released a preliminary report on the results of its second fiscal quarter ended July 31, 2022. The American group shows a very solid performance overall Revenue of $6.7 billion and growth of 3% Sales compared to the same period last year. But the company’s gaming arm has shown worrying signs of weakness over the most recent quarter.
Gaming revenue, consisting primarily of graphics card sales but also GeForce Now subscriptions, down 33% in this second quarter of 2022 compared to the second quarter of 2021. Of the $3.06 billion it generated last year, NVIDIA has “only” recovered $2.04 billion over the past few months. A poor performance offset by the excellent form of the Greens’ data center activity with an estimated turnover of $3.81 billion over the period ie a 61% increase from one year to the next.
NVIDIA drove graphics cards down through its enabled servers
Of course, if NVIDIA isn’t to be pitied, these results sound like a failure for the company, whose forecasts were based on sales of $8.1 billion for this quarter. NVIDIA founder and CEO Jensen Huang attributes the deficit to poor sales of gaming products “adverse macroeconomic conditions” and the “Component Shortage” to explain this setback, explaining that NVIDIA has taken steps with its partners to adjust prices and inventory levels as the manufacturer expects market difficulties to persist in the coming months.
It should be noted that AMD seems less affected by economic conditions. The Reds announced 6.6 billion in revenue for their second quarter, including 1.7 billion from gaming and graphics cards, catching up with NVIDIA. The presence of AMD components on the consoles Xbox series and PS5 is probably no stranger to him.
NVIDIA remains confident about the future, citing artificial intelligence in particular as a growing market in which the company is very well positioned. And the gaming industry should recover with the imminent arrival of the GeForce RTX 4000s.