Because since a while using GPUs for crypto mining is not being feasable any longer, GPU prices for Nvidia and AMD on the market know only one direction since a few weeks: downwards.
But still the market is not catching on; sales numbers are not increasing. First explanation by Nvidia for that were "operational challenges."
Now Nvidia published preliminary a desastrous (and well deserved...) financial results for the second quarter fiscal. And again: revenue went down even further. Especially gaming revenue went down further than expected, it almost lost half of the revenue within one year.
To quote the report:
"Second quarter revenue is expected to be approximately $6.70 billion, down 19% sequentially and up 3% from the prior year, primarily reflecting weaker than forecasted Gaming revenue. Gaming revenue was $2.04 billion, down 44% sequentially and down 33% from the prior year. Data Center revenue was $3.81 billion, up 1% sequentially and up 61% from the prior year.
The shortfall relative to the May revenue outlook of $8.10 billion was primarily attributable to lower sell-in of Gaming products reflecting a reduction in channel partner sales likely due to macroeconomic headwinds."
Nvidia now blames the weasel term macroeconomic headwinds as main reason for the bad revenue development, and still does not their too high prices.
It's a real bad situation for Nvidia because their warehouses are full of GPUs which they cannot sell, while the next generation line of GPUs is to be expected to be launched in autumn this year. The way Nvidia wants to sell more GPUs: making them cheaper due to rebate.
NVIDIA today announced selected preliminary financial results for the second quarter ended July 31, 2022.
nvidianews.nvidia.com
NVIDIA Q2 revenue misses projections due to weaker GeForce sales, down 44% Q/Q NVIDIA published its preliminary second quarter result showing lower sales than projected. The company revenue from gaming market has decreased by 44% quarter to quarter, which is described by NVIDIA CEO as...
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