7/8/2023 0 Comments Stocks nvda![]() ![]() At the same time, spending on video gaming hardware is also expected to decline. The market research firm expects PC sales to drop 8.2% in 2022. According to IDC, PC sales fell 15.3% year over year in the second quarter of 2022. The segment's contribution has now dropped to 30%.Ī turnaround in the video gaming segment looks unlikely as sales of PCs are dropping at an alarming pace. ![]() That's bad news for the company as gaming is Nvidia's second-largest source of revenue, producing 43% of its top line in the fiscal first quarter. ![]() In simpler words, Nvidia's gaming business is likely to be plagued by a combination of low volumes and weak pricing. High inflation is forcing Nvidia to reduce the price of its graphics cards and reduce inventory at the same time. But it now seems that the problem is bigger than Nvidia had anticipated. Nvidia itself had warned on its May earnings conference call that gaming revenue would take a $400 million hit on account of weak sales of gaming GPUs in Russia and China. However, the weakness in the gaming segment isn't surprising as there have been signs of weak graphics card demand of late. More specifically, Nvidia's gaming segment revenue was down 33% year over year in the fiscal second quarter to $2.04 billion. ![]()
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