Nvidia Corp. executives on Wednesday forecast another revenue shortfall in the current quarter, after confirming an earlier warning by showing off a sharp reduction in profit. For the fiscal third, or current, quarter, Nvidia
forecast revenue of $5.78 billion to $6.02 billion, while analysts surveyed by FactSet, on average, have forecast earnings of 85 cents a share on revenue of $6.91 billion.
Nvidia reported second-quarter net income of $656 million, or 26 cents a share, compared with $2.37 billion, or 94 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 51 cents a share, compared with $1.04 a share in the year-ago period. Revenue rose to $6.7 billion from $6.51 billion in the year-ago quarter. Analysts had forecast 50 cents a share on revenue of $6.7 billion. Earlier in the month, Nvidia warned of a $1.4 billion revenue shortfall because of weak gaming sales. That’s on top of the $500 million Nvidia pulled from its second-quarter revenue forecast because of the COVID lockdowns in China and the war in Ukraine. PC sales have pulled back considerably after a two-year surge, and spending on videogames and gear for them has also come back to earth. At the same time, drops in cryptocurrency prices have made mining less profitable, and Nvidia cards have been used extensively to mine for Ethereum
and other crypto. Data-center sales rose 61% to $3.81 billion, while gaming sales declined 33% to $2.04 billion from a year ago, “primarily attributable to lower sell-in of gaming products, reflecting reduced channel partner sales due to macroeconomic hea …