In this video, I will be going over Nvidia's (NVDA 4.35%) preliminary financial results for the second quarter.
- Usually, when companies announce preliminary results, it's not good news. They do it to prevent a hard landing when they actually report earnings -- which, in the case of Nvidia, is on Aug. 24.
- The company was expecting Q2 revenue to be $8.1 billion, but that number came in much lower at $6.7 billion, down 19% quarter over quarter (QOQ) and up 3% year over year (YOY).
- The company blames the gaming segment, which came in weaker than expected because of the challenging market conditions. Management expects those conditions to continue in Q3.
- This has obviously impacted Nvidia's gross margin for the quarter, but management said that the long-term gross margin profile is still intact.
- Gaming revenue was $2.04 billion, down 44% QOQ and down 33% YOY.
- On the bright side, data center revenue was $3.81, up 61% YOY and up 1% QOQ.
- To my surprise, automotive revenue was up 45% YOY and 59% QOQ.
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*Stock prices used were the closing prices of Aug. 5, 2022. The video was published on Aug. 8, 2022.
