Nvidia's Revenue Drops as Ada Lovelace Looms and Hopper Enters Production
upstart writes:
The party is over for Nvidia as crypto and gaming GPU demand is down:
Nvidia on Wednesday announced its financial results for the second quarter of its fiscal year 2023. The results were a mixed bag as its client PC businesses suffered declines, but its automotive and data center businesses thrived.
Nvidia's gaming, professional graphics, mining, and OEM business segments were down significantly both sequentially and annually, which is why it had to warn investors that it expects slow sales of gaming and ProViz graphics products to persist for a while. Meanwhile, the company said that it plans to talk about its next-generation Ada Lovelace architecture next month but never revealed when actual GeForce RTX 40-series graphics boards will be available.
By contrast, Nvidia's data center and automotive hardware shipments were up significantly compared to the same quarter a year ago. They will be up again in Q3 FY2023 now that the company's Hopper H100 compute GPUs are in total production and ready to ship.
[...] During its second quarter of fiscal 2023, Nvidia encountered multiple challenges, including macroeconomic conditions (inflation and uncertainty among consumers), high inventory levels in the channel (as the company aggressively sold its graphics cards in prior quarters), softening demand from the end user (both because gamers are expecting Ada Lovelace to launch shortly and because of uncertainties), inventory corrections by partners, and lowering prices of graphics cards as a result of softening demand as well as increased supply by competition.
[...] It should be noted that Nvidia's gaming revenue in Q2 was still significantly higher when compared to $1.654 billion in the second quarter of the company's FY2021 (~calendar Q2 2020). It indicates that the chip designer benefited greatly from increased demand for discrete GPUs for gaming PCs, increased prices of standalone graphics cards, and the crypto mining craze.
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