Shulou(Shulou.com)11/24 Report--

CTOnews.com August 25 news, PC sales fell suddenly this quarter, Nvidia, like Intel, suddenly ran into trouble. Nvidia today announced the company's results for the second quarter of fiscal 2023. According to the report, Nvidia's revenue in the second quarter was $6.704 billion, up 3% from $6.507 billion in the same period last year and down 19% from $8.288 billion in the previous quarter. Net profit was $656 million, down 72% from $2.374 billion in the same period last year and 59% from $1.618 billion in the previous quarter Adjusted net profit, not in accordance with US GAAP, was $1.292 billion, down 51 per cent from $2.623 billion a year earlier and 63 per cent from $3.443 billion in the previous quarter.

Although the second-quarter results are not satisfactory for Nvidia, the opposite may be true for gamers. Huang Renxun, chief executive of Nvidia, confirmed months of speculation that the company had made too many graphics cards and was now forced to sell them at lower prices. "We found that we had excess inventory," said Huang Renxun. "our strategy is to sell at a much lower level than the current level of sales in the market in order to give the channel a chance to correct it."

Huang Renxun also said: "We have implemented some plans with our partners to position the price of products in the channel to prepare for our next generation of products."

Huang Renxun's words show that Nvidia is selling at a reduced price in order to sell as many RTX 3000 graphics cards as possible before the RTX 3000 series arrives this fall.

Of course, this does not necessarily mean that the price of graphics cards or game laptops will be greatly reduced soon, because the final price depends on partners and retailers, who certainly have an incentive to clear inventory, but may disguise the price reduction of graphics cards as a promotion rather than announcing an across-the-board price reduction. In any case, the price trend of graphics cards will definitely decline in the future.

Huang Renxun also hinted that the current generation of ampere GPU will coexist with the next generation of GPU. Second, Collette Kress, Nvidia's chief financial officer, said the company might have new business to improve its gaming revenue. Nvidia has "a new market segment and we plan to develop it with our gaming technology," she said on a conference call.

CTOnews.com learned that Nvidia repeatedly stressed in today's earnings call for the second quarter of 2022 that demand for games did not actually fall despite a sudden drop in revenue, noting that GeForce sales were still up 70 per cent since before the outbreak.

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