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NVIDIA GeForce GPU sales drop 44% pulling Q2 2022 revenue down with it

NVIDIA Q2 2022 revenue missed projections, gaming GPU sales are down which forces NVIDIA to work with partners on price drops.

Published Aug 9, 2022 6:30 PM CDT   |   Updated Wed, Aug 31 2022 6:05 AM CDT
2 minutes & 13 seconds read time

NVIDIA has posted its preliminary Q2 2022 financial results, showing us that GeForce GPU revenues "declined significantly".

NVIDIA GeForce GPU sales drop 44% pulling Q2 2022 revenue down with it 504

The numbers are so bad that NVIDIA founder and CEO Jensen Huang himself said that NVIDIA GeForce RTX graphics card sales "declined significantly". Jensen continued: "Our gaming product sell-through projections declined significantly as the quarter progressed, As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory".

Gaming revenues were at $2.04 billion, down 44% quarter-over-quarter and down 33% year-over-year... seeing the data center revenue taking the top spot once again with $3.81 billion in revenue, up 1% quarter-over-quarter, but NVIDIA has been doing well there with the data center revenues up 61% year-over-year.

Jensen continued: "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".

NVIDIA should post higher Q3 2022 results with more GeForce RTX graphics card sales with prices dropping right now worldwide, and then the introduction of their next-gen Ada Lovelace GPU architecture and upcoming GeForce RTX 40 series GPUs dropping later this year.

The entire cryptocurrency market falling into a black hole didn't help, with GPU sales dropping... big time... but warehouses filled with last-gen and current-gen Turing and Ampere graphics cards doesn't help. NVIDIA has been forced to push back its next-gen Ada Lovelace GPUs because of it... there's a lot of drama going on behind the scenes, that's for sure.

Colette Kress, EVP and CFO of NVIDIA added: "The significant charges incurred in the quarter reflect previous long-term purchase commitments we made during a time of severe component shortages and our current expectation of ongoing macroeconomic uncertainty. We believe our long-term gross margin profile is intact. 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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Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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