“We are navigating our supply chain transitions in a challenging macro environment and we will get through this,” said CEO Jensen Huang.
Nvidia Corp. (NVDA) – Get NVIDIA Corporation Report posted weaker-than-expected second quarter earnings Wednesday, but noted that revenues were largely in-line with its early August update amid a big decline in sales from its video gaming division.
Nvidia posted adjusted earnings of 51 cents per share for the three months ending in July, the group’s fiscal second quarter, well shy of the Street consensus forecast of $1.26 per share. Group revenues, Nvidia said, rose 3% from last year to $6.7 billion, a figure that was largely in-line with the chipmaker’s pre-announcement in early August.
Data center revenues were pegged at $3.81 billion, Nvidia said, while gaming revenues were $2.04 billion, a figure that also matched the group’s early August update.
Looking into the current quarter, Nvidia said it sees revenues of around $5.9 billion, plus or minus 2%, compared to the Street consensus of $6.95 billion, with gross margins of around 65%, plus or minus 2%.
“Accelerated computing and AI, the pioneering work of our company, are transforming industries. Automotive is becoming a tech industry and is on track to be our next billion-dollar business,” said CEO Jensen Huang. “Advances in AI are driving our Data Center business while accelerating breakthroughs in fields from drug discovery to climate science to robotics.”
“We are navigating our supply chain transitions in a challenging macro environment and we will get through this,” Huang added.
Nvidia shares were marked 0.71% lower in after-hours trading immediately following the earnings release to indicate a Thursday opening bell price of $171.42 each.