In terms of revenue and earnings per share, Nvidia’s second-quarter results fell short of Wall Street’s forecasts.
The news is consistent with Nvidia’s preliminary earnings two weeks ago. The chipmaker issued a warning that it would fail Wall Street expectations and that growth had drastically slowed as a result of weak gaming sales that were influenced by macroeconomic factors. It also issued a warning about a decline in gross margin.
Revenue from Nvidia’s gaming division fell 33% year over year to $2.04 billion, a more drastic fall than the firm had anticipated. Since the start of the year, the price of Nvidia stock has fallen by more than 42%. Data center operations for the organization performed marginally better. It increased 61% on an annual basis to $3.8 billion, led by large cloud providers, or what the business refers to as “hyperscale” customers.
Despite Nvidia’s revenue shortfall, Refinitiv’s expectations remained stable despite the company’s warning regarding its outlook and expectation to report $6.7 billion for the quarter.
Over 4% was lost by Nvidia shares during extended trading.