Nvidia, gaming revenue drops by 33%
Nvidia has been among the chip companies hardest hit by consumers curtailing spending recently
Nvidia Corp. said it is expecting sales of about $5.9 billion for the current quarter, below the $6.9 billion analysts expected in a FactSet survey and well below the $8.4 billion Wall Street expected before the sales warning.
Tweet on the revenue drop by chip giant Nvdia
@nvidia gaming revenue drops by 33%
Nvidia Corp. said it is expecting sales of about $5.9 billion for the current quarter, below the $6.9 billion analysts expected in a @FactSet survey and well below the $8.4 billion Wall Street expected, @wsj reportshttps://t.co/Lql04ZbvFl
— The_Journalbiz (@the_journalbiz) August 25, 2022
The projected sales figure represents a decline of 17% compared with the same period last year, two weeks after warning investors that its videogaming business was hit by a downturn in demand.
Here’s how Nvidia did versus Refinitiv consensus estimates:
- EPS: $0.51, adjusted, versus $1.26 expected
- Revenue: $6.7 billion versus $8.10 billion expected
Nvidia has been among the chip companies hardest hit by consumers curtailing spending in response to high inflation and rising interest rates.
About a third of Nvidia’s sales come from videogamers who covet cutting-edge graphics performance and whose buying decisions waver with their spending power.
The company’s stock has fallen 43% this year amid a broad selloff in semiconductor stocks, but it remains the U.S.’s biggest chip company by market value.
