Piper Sandler also noted that data center came in slightly lower than expectations, largely due to supply-chain issues. Which rate Nvidia at Overweight, said they weren’t “surprised” to see the lower gaming revenue, but were surprised by the size of the miss. Barron’s had also cautioned investors about the company’s fundamentals in April, citing unsustainable prices and exposure to cryptocurrency mining. Wall Street analysts had already slashed their projections heading into earnings, as demand for graphics cards and personal computers weakened.

Nvidia will report final earnings results on Aug. That said, the company acknowledged it was short of expectations because of supply chain disruptions. The silver lining will come from the company’s data center segment, which saw record revenue of $3.81 billion for the quarter, up 61% from the year before. The company still believes its long-term gross margin profile is intact, as it has slowed operating expense growth, said CFO Colette Kress. “As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory.”Īdjusted gross margins are expected to come in at 46.1%, down from the company’s previous guidance of 67.1%, Nvidia said.

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

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