Nvidia’s Graphics Card Sales Plummet, AMD Profits

NVIDIA’s gaming business is in bad shape and the situation is benefiting AMD, which is increasingly relying on its GPUs to realize its growth. But NVIDIA can count on other sectors to ensure good financial health.

NVIDIA has released a preliminary report on its fiscal second-quarter results that ended July 31, 2022. The US group is posting a very solid performance overall, with revenue of $6.7 billion and a growth of 3% turnover compared to the same period last year.

But the company’s gaming division has shown worrying signs of weakness in the last quarter. Gaming revenue, mainly consisting of the sale of graphics cards, but also GeForce Now subscriptions, dropped 33% in this second quarter of 2022 compared to the second quarter of 2021.

Of the $3.06 billion generated last year, NVIDIA has recovered “only” $2.04 billion in recent months. Poor performance was offset by the excellent shape of the Greens’ Data Center business with estimated revenues of $3.81 billion for the period, ie a 61% increase from one year to the next.

NVIDIA powered by its enabled servers, graphics cards down

Of course, if NVIDIA has no pity, these results sound like a failure for the company, whose forecasts are for revenue of $8.1 billion for this quarter. Jensen Huang, founder, and CEO of NVIDIA attributes the shortfall to poor sales of gaming products.

With its partners adjusting prices and stocks, the manufacturer expects the market problems to continue in the coming months. It should be noted that AMD appears to be less affected by the economic conditions. The Reds announced revenue of $6.6 billion for their second quarter, with $1.7 billion coming from gaming and graphics cards, overtaking NVIDIA.

The presence of AMD components on the console’s Xbox Series and PS5 is probably no stranger to it. NVIDIA remains confident for the future, citing the field of artificial intelligence in particular as a growing market in which the company is very well positioned. And the gaming industry should bounce back with the imminent arrival of the GeForce RTX 4000s.