Nvidia’s net income down 72% year-on-year

Nvidia experienced strong sales growth in the PC and gaming markets during the 2020 and 2021 covid pandemic. Now, however, those sectors are slowing down, and so the company has recently said that it will not meet expectations for this quarter. Which it confirmed in today’s official quarterly results.

So how did the company perform?

Revenue was $6.7 billion, down 19% from the first quarter when the company hit $8.3 billion in revenue. However, it’s 3% more than in Q2 2021, when the company reported $6.5 billion.

Operating income (GAAP) was $499 million, down 73% from Q1 when the company reported $1.87 billion. Year-over-year, it’s down 80%, when the company reported an operating income of $2.44 billion in the second quarter of 2021.

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So is net income, which was $656 million, down 59% from the first quarter, when the company reported $2.37 billion. Year-over-year, it’s down 72%, when the company reported a net income of $2.37 billion in the second quarter of 2021.

Nvidia logo and sign on headquarters

The company said:

“The shortfall from May’s revenue guidance of $8.10 billion was primarily due to lower gaming product sales, reflecting a reduction in channel partner sales likely due to macroeconomic hurdles.”

Gaming underperformed, but data centers made up for it

So Nvidia reported revenue in the gaming segment of $2.04 billion. That’s down 33% year-over-year and 44% from the previous quarter.

However, the data center segment fared very well, where the company reported sales of $3.81 billion, a 61% year-over-year increase. Compared to the previous quarter, that’s only a 1% increase, which is a success for the company, however, almost all other segments lost significantly. So this saved Nvidia as companies are increasingly focusing on machine learning and intentional intelligence, so they need powerful chips from Nvidia.

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Another interesting note is the automotive segment, which showed a 45% year-over-year increase with $220 million in revenue and even a 59% increase from the previous quarter.