Chip maker NVIDIA (NVIDIA) announced its second-quarter financial results yesterday (24), attributing the lower-than-expected revenue to the plummeting gaming revenue. NVIDIA’s total revenue in the second quarter was $6.7 billion, up 3% year-on-year, and its net profit was $656 million, down 72% year-on-year.
Gaming graphics card sales were nearly halved, and gaming revenue fell 44% from the previous quarter and 33% from the same period last year.
Yesterday (24th), NVIDIA Chief Financial Officer Colette Kress explained to investors in an earnings conference call that NVIDIA has estimated that the performance of the e-sports division will decline since May due to the impact of the Russian-Ukrainian war and China’s epidemic blockade, but the “decline” It’s bigger than expected.”
In addition to the professional mining card production line that includes products in the e-sports sector, cryptocurrency mining processor (CMP) sales continued to decline “nominally lower than $266 million a year ago.” NVIDIA’s CMP ranked fourth last year. In the second quarter, revenue fell 77% from the third quarter to $24 million.
Colette Kress’s explanation for the decline in eSports revenue is: As mentioned last quarter, we had expected cryptocurrency mining to contribute less to gaming graphics card demand, but we were unable to accurately quantify the slowdown in demand for gaming graphics cards from the decline in cryptocurrency mining. Degree.
Graphics card prices will collapse.
Due to the sharp drop in the sales of NVIDIA game graphics cards, the player market has begun to look forward to the sale of graphics cards with reduced prices. Domestic PTT forums argue about the price of graphics cards. “They think the price reduction may be a premium and then fall back to the original price.” 10,000, within 309.02 million yuan” “40 series is more difficult to clear inventory”.
The U.S. Securities and Exchange Commission (SEC) filed charges against NVIDIA in May this year for failing to truthfully disclose to investors that last year’s mining boom caused a sharp increase in the revenue of the e-sports sector, not a stable income driven by the expansion of the industry. NVIDIA chose to pay at that time. Settle with the SEC for $5 million.
Post time: Sep-13-2022