Nvidia initially expects game sales to decline due to switch to new architecture

Nvidia provided key business numbers for the first quarter of 2022 in its latest earnings call. The California company generated record sales of $8.29 billion. This is an increase of 46% compared to 2021 and 8% compared to the previous quarter. For the first time in the company’s history, revenue from data centers exceeded revenue from selling gaming graphics cards.

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Nvidia cut its earnings to nearly $1.6 billion from previous quarters, reflecting a $3.5 billion increase in spending last quarter. However, since $2.1 billion of that amount is used to buy back shares and pay dividends to shareholders, you don’t have to worry. For the next quarter, the company expects sales of about $8.1 billion less. The reasons for this are the closure in China, which limits production or makes it more expensive, and the cessation of trade relations with Russia. Combined, these releases are said to be responsible for $500 million less sales than originally expected.

In addition, there is less demand from the European Union, China and the United States of America, which may be partly due to crypto miners and partly to the next new generation of graphics cards. According to its own statement, Nvidia can’t currently estimate the relevant implications for this, but it still expects a good second quarter. However, in the third quarter, the tide should turn again due to the new graphics cards and it appears that new sales and record profits are possible.

source: nvidia