Nvidia lowers its revenue forecast for the past quarter by 17 percent. The company does this partly because its revenue from gaming products such as GeForce GPUs was lower than expected according to the preliminary quarterly figures.
Nvidia writes that video card sales fell due to ‘economic headwinds’, causing consumers to spend less. In addition to lower sales, Nvidia also invested in pricing programs with sales partners, in order to lower the prices of video cards. CEO Jensen Huang says the company has “taken action” to adjust prices and inventories amid declining sales.
All in all, the company expects quarterly revenue of $6.7 billion, where the company previously shared a revenue forecast of $8.1 billion. Revenue is 3 percent higher than the same period in 2021 and 19 percent lower than the previous quarter. The slight increase in turnover compared to last year is partly due to the fact that the company’s data center division has a high turnover expectation. That industry was expected to record record revenues of $3.81 billion last quarter, up 61 percent from a year ago. The GPU designer also says here that the turnover from the data center division was lower than expected.
The company’s quarterly figures are not yet official. These are preliminary estimates based on information currently available to Nvidia’s management. The company will publish its final quarterly results on August 24 and will also hold a conference call with shareholders.
Until the beginning of this year, the demand for video cards was considerably higher than the supply, but since this spring the demand and price declines have started. Tweakers wrote about this recently a backstory. The first RTX 40 video cards are expected later this year. Presumably Nvidia will first come with a GeForce RTX 4090 and later with lower-ranked models. The company would distribute those releases because of inventories of current RTX 30 graphics cards that are still with video card manufacturers and distributors.