Nvidia Is Still Making Billions In Q4 2023 Despite a Giant Drop In PC Demand

In its fourth quarter and full-year earnings report yesterday, Nvidia reported $6.05 billion in revenue for Q4 of its fiscal 2023 and $26.92 billion for the full year. That's "almost identical to last year, though profit was down 55 percent," notes The Verge. "Remember: in 2021, $5 billion in revenue a quarter was a new Nvidia record. Now it's the status quo: the company says it's expecting to see $6.5 billion next quarter, too." From the report: Nvidia's data center and automotive businesses were actually up this quarter, with record revenue for automotive of $294 million; the dip was largely in Nvidia's graphics business, particularly gaming, which were each down 46 percent. That gaming decline includes "lower shipments of SOCs for game consoles," which is code for "Nintendo isn't selling as many Switches anymore" -- it's the only game console that uses an Nvidia chip. Like other chipmakers, Nvidia is shipping fewer GPUs to retailers and partners instead of slashing prices. The polite phrase is "lower sell-in to partners to help align channel inventory levels with current demand expectations." Nvidia also blamed disruptions in China due to covid and other issues. Every PC maker is reporting that demand for computers has tanked this past quarter, with research firm Gartner calling the 28.5 percent dip in shipments "the largest quarterly shipment decline since Gartner began tracking the PC market in the mid-1990s." That was on top of the slump companies like Nvidia had already seen. And while AMD seemed optimistic this quarter that the slump won't last for long, even it suggested that client processor and gaming revenue would continue to go down in the first half of the calendar year.

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