Nvidia Graphic Card Sales Dropped By 50 Percent

The effects of the crisis are also clearly noticeable at Nvidia. Sales fell by 17 percent year-on-year in the third quarter of 2022, with sales of gaming graphics cards in particular having plummeted recently – because demand is no longer there.

As Nvidia announced today, it is currently adapting to the macroeconomic situation. After the boom during the coronavirus pandemic, demand for Nvidia products has fallen sharply again in many areas. Although it exceeded the expectations of the financial world, it had to report falling sales and profits almost without exception.

Data center business is growing comparatively

Only the business with data center products was a ray of hope, as Nvidia was able to convert almost four billion dollars in this area, which corresponds to an increase of 31 percent compared to the same period last year. There was demand above all from American cloud providers and Internet companies, it said.

On the other hand, Nvidia is having to contend with a worsening of the overall situation in the PC market when it comes to selling gaming graphics cards. Sales here in the last quarter were only 1.57 percent, which corresponds to a decline of around 51 percent compared to the same quarter in the previous year.

Nvidia justified the decline by saying that end customers are asking for significantly fewer graphics cards. Retailers have more products in stock than are currently sold to end customers, so dealers hardly ever buy new graphics cards. Instead, attempts are being made to sell older models with discounts and thus reduce stocks to make room for new products.

Nvidia also confirmed that demand from the crypto market had plummeted, with sales in this area well below the $100 million mark. The background here is apparently the changes to the cryptocurrency Ethereum, which make the use of graphics cards for mining no longer worthwhile.