Home > Latest News > Nvidia Down $1.B In Gaming Revenue, AMD Up $2.4B

Nvidia Down $1.B In Gaming Revenue, AMD Up $2.4B

Nvidia’s gaming revenue has dropped by a third, with the division bringing in A$1.5 billion less than a year ago.

Nvidia reported A$2.9 billion in gaming revenue for the second quarter of 2022, down from A$4.4 billion a year ago.

This marks a 44 per cent sequentially fell, and a year-on-year drop of 33 per cent.

“Our gaming product sell-through projections declined significantly as the quarter progressed,” admitted Jensen Huang, founder and CEO of NVIDIA.

“As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory.

“NVIDIA has excellent products and position driving large and growing markets. As we navigate these challenges, we remain focused on the once-in-a-generation opportunity to reinvent computing for the era of AI.”

The company’s second quarter revenue of A $9.6 billion was well below the outlook of A$11.6 billion. Nvidia credits this shortfall to “lower sell-in of gaming products, reflecting a reduction in channel partner sales, likely due to macroeconomic headwinds.”

This is in stark contrast to AMD, whose gaming revenue jumped by 32 per cent in the second quarter, to A$2.43 billion.

AMD’s overall revenue leaped A$9.45 billion year -on-year, the company’s eighth straight quarter of record review.

CEO Lisa Su credits “our strong execution and expanded product portfolio” for this streak.

“We see continued growth in the back half of the year highlighted by our next-generation 5nm product shipments.”

 

 

AMD earnings

Both the PlayStation 5 and Xbox use AMD GPUs, as do a number of high-selling Asus gaming laptops.

Nvidia, on the other hand, deal in more high-end gaming GPUs.

Colette Kress, CFO of NVIDIA believes the company is prepared for these headwinds.

“We believe our long-term gross margin profile is intact,” she said.

“We have slowed operating expense growth, balancing investments for long-term growth while managing near-term profitability. We plan to continue stock buybacks as we foresee strong cash generation and future growth.”

 



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