Nvidia’s earnings stagnation came to an end Thursday, as financial results for the second quarter show that growth is slowing compared to previous quarters. The company also released lower third-quarter forecasts than market estimates, sending its shares down after hours.
The company based in Santa Clara, California book net income in the second quarter of $1.1 billion, or $1.76 per share. Non-GAAP earnings amounted to $1.94 per share on sales of $3.12 billion, up 40% year-on-year. Wall Street was expecting a profit of $1.66 per share with a turnover of $3.1 billion.
Nvidia shares fell by more than five percent in after-market trading.
According to Nvidia, gaming revenue increased 52 percent from the same period last year to $1.8 billion. At the same time, data center sales increased 83 percent year-over-year to $760 million. Nvidia’s automotive sector reported revenues of $161 million and revenues from professional visualization of $ 281 million.
Nvidia’s commentary on the CFO also revealed that the company’s OEM and intellectual property revenues decreased by 54% compared to the same period of the year to $ 116 million. Quarter-on-quarter, this segment decreased by 70%.
In terms of guidance, Nvidia expects a turnover of $3.19 billion in the third quarter, a turnover of less than $3.34 billion.
Jensen Huang, CEO of Nvidia, focused his comments on GPU Turing recently released.
“Turing is the first GPU in the world to draw rays and complements the NVIDIA RTX platform, realizing a 40-year dream in the graphics computing industry,” he said. “Turing is a big step forward and the biggest breakthrough in IT since we introduced CUDA more than a decade ago.”