Nvidia's sales continued to fall as forecast in the 3rd quarter of the 2023 fiscal year: At 5.9 billion US dollars, the group's sales were 17 percent less than a year earlier, compared to the 2nd th quarter revenue fell 12 percent. Sales of gaming products (essentially GeForce) fell by 51 percent, in the server it increased.
Geforce sales collapsed< /h2>
Nvidia's gaming revenue for the August-October period was $1.57 billion, up from $3.22 billion a year ago. Compared to the second quarter, the decline in sales was 23 percent. In the high phase of the mining boom, in the 4th quarter of 2021 (4th quarter of fiscal year 2022), Nvidia had calculated sales of 3.42 billion US dollars in the gaming division. It is not known how high the proportion of gaming products that were bought not for gaming PCs but for mining farms was.
In the third quarter of this Year-to-date, sales of hardware for mining systems are likely to have tended towards zero, and the two-year-old RTX 3000 product portfolio was met with significantly lower consumer behavior among private end customers worldwide.
The server went uphill
The decline in sales of gaming products was not entirely, but to a large extent offset by the sale of products in the Data Center segment, i.e. essentially the Ampere and, for the first time, the Hopper GPUs (H100) for servers. In this area, sales rose by 31 percent over the previous year to 3.83 billion US dollars, compared to the last quarter the growth was two percent. With a factor of 2.4, sales of server versus gaming products have never been presented before.
Loss for Omniverse, record in car
At a low level of now 200 million US dollars, sales in the “Professional Visualization” segment fell significantly compared to the previous year with a 65 percent decline. The division essentially includes Nvidia's Omniverse ecosystem. The Automotive and Embedded division was again able to achieve a new sales record of 251 million US dollars, with an increase of 86 percent in this segment.
NVIDIA: Sales and revenues since Q1/2006 (fiscal year) -4001.9446.1168.288Millions US dollar Q1/2006Q1/2007Q1/2008Q1/2009Q1/2010Q3/2011Q1/2012Q1 /2013Q3/2014Q3/2015Q1/2015Q3/2016Q1/2017Q1/2017Q3/2018Q1/2019Q1/2019Q1/2020Q1/2021Q1/2021Q3/20222Q1/2023
- Revenue
- Net profit
No decrease in profit
Compared to the second quarter, net profit has not fallen, but increased: Nvidia was able to increase its gross margin (profit after deduction of variable costs (material, production, etc.)) from 656 million US dollars to 680 million from 43.6 to 53.2 percent. posted, while the fixed costs even rose slightly. Compared to last year, the decline is again significant: Nvidia was able to report a profit of 2.5 billion US dollars at the time, the gross mark was even higher at 65.2 percent.
Sales remain at USD 6.0 billion
For the fourth quarter, Nvidia again expects sales of USD 6.0 billion -dollar with a simultaneous increase in the gross margin from 56.1 to 63.2 to 66.0 percent. Most recently, Nvidia was able to post sales in the fourth quarter, which includes the Christmas business, that were higher in the single-digit percentage range than in the third quarter. Nvidia has not yet bottomed out in terms of sales in its own forecast, but the downturn has clearly lost momentum. Nvidia does not provide separate forecasts for individual product segments.