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

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

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.

• Read more: Graphics card prices have dropped a whopping 57% since January, yay!
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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.

• Read more: AIBs threaten NVIDIA Ada Lovelace GPU allocation: 'go pound sand'
• Read more: NVIDIA wants to cut orders with TSMC for next-gen 5nm RTX 40 GPUs

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".