Nvidia claims it is “navigating its way through macro environmental challenges” which have caused a challenging second quarter.
Its second-quarter results were dire. While it reported a three percent year on year increase in revenue of $6.70 billion, this was down 19 percent from the previous quarter.
Operating income also fell sharply, down 80 percent year on year to $499 million, while net income dropped 72 percent to $656 million in the same period.
Some of this mess was due to Nvidia’s failed takeover of British chip designer ARM and the fact that Softbank, which owns ARM, kept the $1.25 billion prepaid by Nvidia as part of the acquisition agreement. Still Nvidia gets to keep its 20-year ARM licence which is better than a poke in the eye.
Nvidia said it continues to navigate a challenging market environment with supply chain disruptions and falling demand for gaming graphic cards.
Nvidia’s gaming revenue took a big hit, with second quarter revenue down 33 percent from a year ago to $2.04 billion.
Professional visualisation revenue also fell, down four percent year on year to $496 million.
Nvidia boss Jensen Huang said he had a plan and Nvidia would navigate through all this.
The company’s data centre business saw strong revenue growth of 61 percent year on year to $3.81 billion while automotive revenue was up 45 percent in the same period.
Huang added: “Accelerated computing and AI, the pioneering work of our company, are transforming industries.
“Automotive is becoming a tech industry and is on track to be our next billion-dollar business. Advances in AI are driving our Data Centre business while accelerating breakthroughs in fields from drug discovery to climate science to robotics.”
