Nvidia has pre-announced (never a good thing) a glimpse of their upcoming earnings results for 2Q22 (cy). The mining crash has hit Nvidia hard and they are reporting $6.7B in revenue, down from their previously announced $8.1B of projected revenue for the quarter. The hit has mostly come from the "gaming" sector, Nvidia said (the quotes are my own, I think we all know it wasn't actually gaming). Nvidia also said that the challenging market conditions in the "gaming" sector are expected to continue into the 3rd quarter. Nvidia also announced that data center, while up, also fell short of the companies expectations due to supply chain issues. Their gross margin plummeted more than 20 pp down to 43.7% which Nvidia has blamed on long term purchase commitments they made before the unexpected softening of the "gaming" market. They do expect the gross margin hit to be short lived as they balance out supply with the demand.
This news confirms the stories that Nvidia has a major surplus of GPU stock it has to clear due to the mining crash, that they were much more exposed to the volatility of the mining market than AMD/Intel, and that they continue to try to hide this fact by blaming the gaming market for the abrupt weak demand.
This news confirms the stories that Nvidia has a major surplus of GPU stock it has to clear due to the mining crash, that they were much more exposed to the volatility of the mining market than AMD/Intel, and that they continue to try to hide this fact by blaming the gaming market for the abrupt weak demand.