Nvidia (Nvidia) (NVDA-US) shares fell 8 percent in early trading Monday after the company reported preliminary second-quarter revenue of $6.7 billion, well below its initial forecast of $8.1 billion.
The company said the shortage primarily reflected weaker-than-expected revenue from gaming products, which fell 44% sequentially and 33% from the previous year. Huida said the preliminary financial report “mainly reflects the decline in sales of game products, reflecting that sales of channel partners may decline due to macroeconomic headwinds.”
It also said its data center division, which was hit by supply chain disruptions, reported preliminary revenue of $3.81 billion, missing company expectations. However, the figure was still up 1% from the previous quarter and 61% year-over-year.
Colette Kress, executive vice president and chief financial officer of Huida, said she believes the company’s long-term gross margin profile remains unchanged, “We have moderated operating expense growth, balanced investments for long-term growth, and adjusted near-term earnings. capacity.” “We will continue to repurchase shares as we foresee strong cash generation and future growth.”
Huida will report its second-quarter fiscal 2023 results on August 24.