Nvidia’s profits collapsed fivefold. The company reported for the previous quarter

Nvidia has published a report on the second quarter of fiscal year 2023.

Nvidia’s profits collapsed fivefold. The company reported for the previous quarter

The company's revenue grew by 3%, to $6.7 billion. Operating profit collapsed by 80%, amounting to 499 million dollars, net income also fell very hard: by 72%, to 656 million dollars. Nvidia does not specify in the report what was the reason for such a significant drop in profits.

If you look at the report in more detail, we can see that revenue from data center solutions has increased by 61%, to 3.8 billion dollars, and now it brings Nvidia the most money. Revenue from gaming products fell by 33%, to $2 billion.

The situation is not saved by the decline in the cost of current graphics gas pedals. In the report, NVIDIA notes that the gaming division had revenues of $2.04 billion, down 44% from the previous quarter and 33% from a year ago.

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However, that slump was partially offset by the HPC division. Sales of data center computing gas pedals generated $3.81 billion for NVIDIA. That's up 61% from a year ago. Another $496 million and $220 million were earned by NVIDIA on sales of professional visualization systems (Omniverse) and chips for the automotive industry.

NVIDIA is not making grand plans for the third quarter. The company expects revenue to decline even more, to $5.9 billion.

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Withholding Tax General Accepted Accounting Standards Letter Of Intent Scarcity Year-to-date Long-Term Liabilities Non-Disclosure Agreement Chief Operating Officer Return on Investment Chief Marketing Officer Chief Financial Officer Asset Protection Trust Chief Security Officer Certified Financial Planner Electronic Funds Transfer Limited Liability Company Close of Business Company Finance Cash Flow Automated Teller Machine Return on Equity stagnation Certified Management Accountant Non-Profit Organization Certified Financial Manager Chief Technology Officer Profit and Loss Profit and Loss Statement Gross Margin