During the pandemic, Team Green broke financial records, generating no less than $5 billion in revenue in a single quarter in 2021. Today, such results are the norm. In the final quarter of 2022, revenue reached $6.05 billion, primarily driven by chip sales for large data centers ($3.6 billion). The automotive segment also showed strong results ($294 million).
Nvidia’s second pillar, besides servers, has long been its video game division, where the slowdown compared to late 2021 was particularly sharp–46%, down to $1.8 billion in revenue (compared to $3.42 billion a year earlier).
Among the corporation’s explanations is a “reduction in shipments of integrated console chips.” The only console powered by “green” chips is the Switch, but Nintendo’s device is aging and losing popularity.
As for PC graphics cards, Nvidia prefers to scale back shipments rather than cut prices, even if excessive retail costs become the primary target of criticism for the RTX 4000 family.
Additionally, the PC market is suffering precisely from the inventory that built up following the Covid-19 era.
During the investor call, CEO Jensen Huang spoke primarily about the server segment, where further growth is expected due to the rising importance of artificial intelligence. Algorithm “training” models are frequently deployed on graphics processing units.