The sales channels Nvidia uses for its gaming customers are the same channels that crypto miners use to buy its products. economy, it did not expect the drop-off to be this drastic.Īlthough the company likes to dance around the topic, an unknown but significant amount of crypto sales are included in its gaming segment. And while management expected a slowdown in gaming due to weak European demand related to the war in Ukraine, COVID-19 lockdowns in China, and the slowing U.S. You can point to gaming revenue, a significant part of the total revenue, being down 44% sequentially and 33% year over year.

So what was the culprit for this growth slowdown? This number was far below the $8.1 billion outlook management provided on the first-quarter fiscal 2023 earnings call. The Motley Fool has a disclosure policy.Nvidia's second-quarter fiscal 2023 total revenues of $6.7 billion were down 19% sequentially and only up 3% year on year. The Motley Fool has positions in and recommends Nvidia. *Stock Advisor returns as of June 2, 2022Ĭhris Neiger has no position in any of the stocks mentioned. and Nvidia wasn't one of them! That's right - they think these 10 stocks are even better buys. They just revealed what they believe are the ten best stocks for investors to buy right now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* When our award-winning analyst team has a stock tip, it can pay to listen. One positive point Kumar did mention, though, is that he believes Nvidia's data center segment is on a 'solid footing' right now. With Kumar's note today, it appears some investors agree that the pain isn't yet over for Nvidia. Investors have fled technology stocks this year on fears that rising inflation - and the Federal Reserve's interest rate hikes in response to it - will slow the economy. While the analyst cut his price target for Nvidia's shares, he maintained his overweight rating for the stock. Referencing the crypto market, Kumar said in the investor note, 'We suspect that there is a strong likelihood that with the meltdown in crypto, some of the industrial miners could sell some of their excess capacity into the secondhand marketplace for GPUs, which may also hinder sales.' consumers to cut back on spending because of economic concerns. Nvidia stopped selling chips in Russia after the country invaded Ukraine, and spending for chips in China has slowed due to ongoing COVID-19 lockdowns there.

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