Nvidia is stuck with its GPUs. The manufacturer wants to empty the entire warehouse with campaigns of sale.
Nvidia’s gaming division collapsed $2.04 billion, or 44 percent, within a quarter. It’s a third compared to the previous year. Consequently, graphics card manufacturer Nvidia missed its sales forecast for the months from May to July 2022 by 19 percent. Instead of 8.1 it is 6.7 billion US dollars. Nvidia has managed to avoid worse as a company thanks to its data center division. It grew 61 percent year-over-year to $3.81 billion. The manufacturer writes this in its report on Initial business numbers.
Main culprit: encryption crash
CEO Jensen Huang blames the gaming division’s weak numbers on macroeconomic conditions. By that it might have meant the collapse of the cryptocurrency in the spring and summer of 2022. This made the mining of Ethereum and Co. Much less attractive and miners bought fewer graphics cards than expected. In addition, a new generation of graphics cards is scheduled to appear this year. This is probably why many gamers wait before buying a new graphics card.
The high inventories and associated provisions are said to cost Nvidia about $1.32 billion. The manufacturer now wants to vacate the warehouse through discount campaigns in cooperation with its partners. Graphics card prices will continue to fall.
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