On Wednesday, August 24, after the U.S. stock market closed, $NVIDIA (NVDA.US)$reported its fiscal 2023 second-quarter results for the period ending July 31 this year.
The earnings report showed that second-quarter revenue was $6.7 billion, up 3% year-over-year but down 19% quarter-over-quarter, generally in line with analyst expectations. Diluted earnings per share under GAAP were $0.26, a decrease of 72% from the same period last year and a decline of 59% from the previous quarter; adjusted earnings per share were $0.51, a decrease of 51% from the same period last year and a drop of 63% from the previous quarter, close to the market expectation of $0.50.
Breaking it down, NVIDIA’s data center revenue in the second quarter was $3.81 billion, an increase of 61% year-over-year and 1% quarter-over-quarter; gaming revenue was $2.04 billion, a decrease of 33% year-over-year and a drop of 44% quarter-over-quarter;Revenue from professional visualization during the reporting period was $496 million, a year-over-year decrease of 4% and a quarter-over-quarter drop of 20%; automotive business contributed $220 million in revenue, an increase of 45% year-over-year and a surge of 59% quarter-over-quarter.
The main driver behind the significant year-over-year growth in data center revenue came from 'hyperscale' customers (large cloud providers); the reason gaming revenue underperformed expectations was primarily due to a decline in sales of gaming products centered on PC graphics cards. Regarding challenges in the gaming business, NVIDIA stated it will work with retailers to adjust pricing...