Judging from the fact that the NVIDIA GeForce RTX 30 series has been dropping in price and giving away games, we can guess that NVIDIA’s gaming graphics cards are not selling very well, but we didn’t expect the difference to be so much. Earlier, NVIDIA officially announced its second-quarter revenue. Compared with the previous quarter, game graphics card revenue fell by 44%, and total revenue was US$1.4 billion different from previous estimates.
NVIDIA’s GPU gaming graphics card sales plummeted in second quarter, revenue fell 44%
NVIDIA divided its second-quarter revenue into five parts, including the gaming department and data center. As you can see from the figure below, revenue from gaming games was US$20.44, a decrease of about 44% compared with the previous quarter, and an annual decline of 33%. Data center revenue was US$3.81 billion, an increase of 1%, and the annual growth rate reached 61%. This shows that NVIDIA’s data center sales performance this year is very good. Total revenue was US$6.7 billion. NVIDIA had previously estimated that it would reach US$8.1 billion, so it was US$1.4 billion less:
However, NVIDIA added that this revenue report is preliminary and a more complete earnings report will be released later.
The main reason for the sharp decline in revenue in the second quarter is nothing more than gaming graphics cards. NVIDIA said that the company is currently working with partners to adjust sales prices and inventory based on lower-than-expected demand. We believe that the decline in revenue is mainly caused by the poor overall economy in the short term. In the long term, we believe that the gross profit margin situation is completely fine. We have also reduced operating expenses and balanced investments to achieve profitability. We plan to continue stock repurchases.
NVIDIA stock price also closed down 6.30% as NVIDIA announced:
There is no specific explanation for which graphics cards NVIDIA refers to by adjusting sales prices and inventory. Unsurprisingly, the high-end graphics cards of the RTX 30 series should be the first to be affected, such as the RTX 3090 series and RTX 3080 series, as recentlyForeign EVGA RTX 3090 Ti is downgraded again, it has become 350 US dollars cheaper in just a few weeks, and you can buy it now for less than NT$35,000.
The price of the RTX 30 series has fallen so fast. In addition to the cryptocurrency downturn, of course, it has a lot to do with the upcoming launch of the RTX 40 series. Many players are waiting to see. Recently, many rumors have pointed out that the performance of the RTX 40 series will be greatly improved. For the same price, no one should be willing to buy the old model with poor performance. Therefore, NVIDIA is likely to need to significantly reduce the price of the RTX 30 series, or provide more incentives, so that players are likely to pay.
NVIDIA GeForce RTX 40 series graphics cards are expected to be launched in the fourth quarter of 2022, and mobile GPUs are expected to be launched around CES 2023.
Below is the foreign media VideoCardz A compiled list of rumored specifications of the RTX 40 series. Currently, there is some news about RTX 4090, RTX 4080, and RTX 4070. However, it is likely that only the RTX 4090 will be released first this year, and the other two will have to wait until next year:
Source: KOCPC Chinese