Nvidia: turnover from gaming products such as GPUs fell by 27 percent last year

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Nvidia has announced its annual results for 2022. The company’s gaming division, which includes GeForce GPUs, had significantly lower turnover than a year earlier. The company says this is due to inventory corrections at customers, which are now ‘largely behind us’.

Nvidia’s gaming division turned over $1.83 billion last quarterwhich represents a decline of 46 percent compared to the same period in 2021. For the entire year, sales fell 27 percent to $9.07 billion compared to 2021, when there were still major shortages of video cards.

Nvidia CFO Colette Kress says to shareholders that this decline in turnover is partly due to inventory corrections at customers, whereby existing GPU stocks are eliminated and therefore fewer new cards are purchased from Nvidia. However, Kress says that this inventory correction is now ‘largely behind us’. According to Nvidia, the gaming market is recovering from the downturn that started in 2022.

At the same time, the company states that its data center division is continuing to grow. Although that industry also recorded an 11 percent decline in revenue last quarter, annual revenue from data centers actually increased by 41 percent compared to 2021. Sales of data center chips also increased in recent months. CEO Jensen Huang states that this is due to the growing popularity of large AI models such as ChatGPT. The company’s A100 and H100 accelerators can be used to train such models. As a result, Huang said, usage of his accelerators has “gone through the roof” in the past 60 days.

Nvidia had a total turnover of $6.051 billion in the fourth quarter of last year with a profit of $1.257 billion. This amounts to a 21 percent decline in sales compared to the same quarter in 2021, while profits fell by 53 percent compared to a year earlier. At the same time, turnover and profit were higher than expected by analysts, given the financial uncertainties currently affecting the chip sector. also writes Reuters. For the full year, Nvidia had a turnover of $ 26.974 billion, which is almost equal to the turnover of a year earlier. However, profits fell by 55 percent to $4.368 billion in all of 2022.

Nvidia expects revenue of approximately $6.5 billion for next quarter. The company told shareholders it expects sequential growth in its four major markets in the first quarter of 2023, led by “strong growth in data centers and gaming.” In the first quarter of 2022 the company had a turnover of approximately 8.3 billion dollars.

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