News Nvidia 2Q22 Financial Results / The Impact of the Mining Crash

[Hitman928]

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.

https://finance.yahoo.com/news/nvidia-announces-preliminary-financial-results-130000607.html

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.

 

[Mopetar]

The stock will rebound. Temporary losses don't change NVidia's long term position in a meaningful way.

 

[positivedoppler]

Not surprised considering the market that is impacted is server GPUs, of which AMD does not have a substantial market share at all. AMD loses out on the EPYC CPU sales for Nvidia systems that use AMD CPUs, but the demand for EPYC is so high that AMD would just sell them to someone else. Also, Nvidia's DGX or whatever is like 2 CPUs with 8 GPUs. Nvidia has far more to lose here than AMD.

I don't think Nvidia will hit guidance next quarter... This is $400 million of HPC GPU revenue lost for Nvidia. That's going to deeply cut their margins.

better for our country and both nvidia and AMD long run. when china invades taiwan, not lt only will amd and nvidia not have tsmc, but nvidia's AI chip will be used as a weapon against us

 

[Joe NYC]

The stock will rebound. Temporary losses don't change NVidia's long term position in a meaningful way.

The problem with NVidia is that it will have 3 consecutive quarters with negative YoY revenue. While the key claim to NVidia inflated market cap is NVidia's growth.

 

[Joe NYC]

Not surprised considering the market that is impacted is server GPUs, of which AMD does not have a substantial market share at all. AMD loses out on the EPYC CPU sales for Nvidia systems that use AMD CPUs, but the demand for EPYC is so high that AMD would just sell them to someone else. Also, Nvidia's DGX or whatever is like 2 CPUs with 8 GPUs. Nvidia has far more to lose here than AMD.

I don't think Nvidia will hit guidance next quarter... This is $400 million of HPC GPU revenue lost for Nvidia. That's going to deeply cut their margins.

We are already some way into NVidia's quarter, so only partial impact in the upcoming quarter. But full impact in the following quarters, and also for growth potential.

 

[DooKey]

U.S. allows Nvidia exports needed to develop flagship AI chip | Reuters

Looks like Uncle Sam is letting them sell those chips a bit longer after all.

 

[SteveGrabowski]

better for our country and both nvidia and AMD long run. when china invades taiwan, not lt only will amd and nvidia not have tsmc, but nvidia's AI chip will be used as a weapon against us

If China attempts to invade Taiwan gpus will be the least of our worries, as we'd be in a hot war, maybe a nuclear war.

 

[GodisanAtheist]

If China attempts to invade Taiwan gpus will be the least of our worries, as we'd be in a hot war, maybe a nuclear war.

- But think of all the heavily armed weebs that will counter invade taiwain for their sakura pink limited edition powercolor cards!

"We will rain so many missiles on you that they will block out the sun"
- Winnie the Pooh

"Good, then we'll fight in the shade cause who knew Taiwan was so ****ing humid?!"
- The 300 Weebs.

 

[jpiniero]

https://www.tomshardware.com/news/nvidia-tsmc-rush-orders-before-china-sanctions

This rumor sounds dumb because they should have supplies on hand, but the rumor states that nVidia is trying to get some rush orders in from TSMC so they can fulfill A100 and H100 orders from China before the deadline.