Nvidia, the leader of the graphics card market, announced its second quarter report for the current year. According to the report, serious decreases are observed in the company’s revenues. Especially the decline in the game wing is at an alarming level.
Sales and revenues, which peaked during the pandemic period, are now starting to decline. Like other companies that announced their financial results for the second quarter of the year, Nvidia could not avoid a bad performance. The firm generated approximately $6.7 billion in revenue in the second quarter. Although this appears to be 3 percent growth on an annual basis, it means a 19 percent decrease on a quarterly basis.
Game revenues crashed
According to Nvidia, the reason for the decline in revenues is the poor performance of the gaming division. Because while the revenue of the company from the gaming department is at the level of $ 2.04 billion, this figure means a decrease of 44 percent on a quarterly basis and 33 percent on an annual basis. The revenue from data centers, on the other hand, is on the balance sheet as $3.81 billion. Data centers revenue fell 1 percent quarter-on-quarter, up 61 percent from last year.
Nvidia GeForce RTX 4070 may surpass RTX 3090 Ti
Connecting Nvidia’s troubles to difficult macroeconomic conditions, CEO Jensen Huag explained that the US economy’s struggle with rising prices and the reverse movements in the labor market are the pillars of the decline. Nvidia is expected to rise again with the upcoming RTX 40 series graphics cards.
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