Nvidia financial results for third quarter of FY23 - 51% YoY decrease in gaming GPUs

winjer

Gold Member

Nvidia reported its third-quarter financial results for the fiscal year 2023 (07/2022-10/2022). It reported a revenue of US$5.93 billion, a 17% YoY decrease, and a 12% QoQ decrease. In terms of gross margin, it reported a figure of 53.6%, an 11.6 point YoY decrease, and a 10.1 point QoQ increase

As with the individual performance of each product, the data center sector performed well, reporting a third-quarter revenue of US$3.83 billion, a 31% YoY increase and a 1% QoQ increase. The company has announced multi-year partnerships with Microsoft and Oracle. The former is to help train, deploy and scale AI through Microsoft Azure, while the latter is for Oracle's cloud infrastructure.
In regard to other sectors, gaming saw a third-quarter revenue of US$1.57 billion, a 51% YoY decrease and a 23% QoQ decrease. Professional visualization reported third-quarter revenue of US$200 million, a 65% YoY decrease and a 60% QoQ decrease. Automotive and embedded saw a third-quarter revenue of $251 million, an 86% YoY increase and a 14% QoQ increase.
According to Nvidia founder and CEO Jensen Huang, the company is currently adapting to the macro environment and correcting its inventory levels to pave way for new products.
"The ramp of our new platforms ― Ada Lovelace RTX graphics, Hopper AI computing, BlueField and Quantum networking, Orin for autonomous vehicles and robotics, and Omniverse ― is off to a great start and forms the foundation of our next phase of growth," he stated.
Looking towards the fourth quarter of FY23, Nvidia expected its revenue to be around US$ 6 billion, with a gross margin of around 63.2%.

Time to raiser prices again...

Hot Shots Idiot GIF
 

Haggard

Banned
"gaming saw a third-quarter revenue of US$1.57 billion, a 51% YoY decrease and a 23% QoQ decrease"

Guess there are not as many idiots buying 2 year old Ampere cards above the original MSRP or willing to finance the fantasy profit margins on those Ada cards as Nvidia thought.
Good to see.
 
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lmimmfn

Member
There is still some pent up demand since the crypto bust, some waiting on prices to stabilise on older cards so I would expect a bigger drop in 23 Q1 when recession starts to bite more.
 

hlm666

Member
I'm really surprised that the market is not completely flooded with cheat RTX cards from miners.
This, where are all the ex mining cards? if the numbers going into mining rigs the last few years were true there should be millions of ampere mining gpus being sold off.

Now back on topic, after these finacials why is their stock price going up?

edit: nvm went and read the article, it's probably because data centre is up 31% and they have some multiyear deals with MS and oracle.
 
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ToTTenTranz

Member
This, where are all the ex mining cards? if the numbers going into mining rigs the last few years were true there should be millions of ampere mining gpus being sold off.
Ever heard of ebay?

https://www.ebay.com/sch/i.html?_from=R40&_trksid=p2380057.m570.l1313&_nkw=rtx+3090&_sacat=0

You can see several RTX 3090 cards going for less than $600, from sellers with >200 ratings, 100% positive.
Switch to RTX 3080 and you'll see lots of cards going for $350-400.

The used market is flooded with mining cards, and they are probably in the millions indeed.


With a $550 used RTX 3090 being good for pretty much any game at 4K, the 4080/4090's value proposition is indeed ridiculous, IMO.
 
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HoofHearted

Member
Not surprised at all... this is what happens when you over estimate (and attempt to inflate) the value of your product(s) in the market.

This is the first time in a LONG time that I've seen widely available stock after an NVIDIA launch in my local store (from this morning):




It's time for a "reset" in prices... 4080 MSRP should be at least 30% to 50% less that what it's currently set at...
 
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Reallink

Member
This was the quarter etherium went proof of stake as well as the quarter everyone knew the 4XXX launches were impending, so no surprises here. You'll have to hold the celebrations until they release more of the 4XXX line, and in sufficient quantities.

Based on data center/AI revenue dwarfing gaming, it's clear all their Ada wafers are going to Mega Corps in the form of Quadro cards. Which explains why there are no 4XXXs for gamers to actually buy, and probably won't be for quite some time as gamers have no prayer outbidding MS, Oracle, et al. 4090s still sell out before product pages can even update, proving that even a 200% margin part isn't worth their time in comparison to what corporations pay, which must be a 500%+ return.
 
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Gaiff

Member
This is good...right?
This is bad. Very bad. They can't allow their stocks to tank so they will overcharge us to maintain high margins and satisfy their investors.
This was the quarter etherium went proof of stake as well as the quarter everyone knew the 4XXX launches were impending, so no surprises here. You'll have to hold the celebrations until they release more of the 4XXX line, and in sufficient quantities.

Based on data center/AI revenue dwarfing gaming, it's clear all their Ada wafers are going to Mega Corps in the form of Quadro cards. Which explains why there are no 4XXXs for gamers to actually buy, and probably won't be for quite some time as gamers have no prayer outbidding MS, Oracle, et al. 4090s still sell out before product pages can even update, proving that even a 200% margin part isn't worth their time in comparison to what corporations pay, which must be a 500%+ return.
4090's are in stock fairly regularly though.
 
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GymWolf

Gold Member
This is bad. Very bad. They can't allow their stocks to tank so they will overcharge us to maintain high margins and satisfy their investors.

4090's are in stock fairly regularly though.
Or they are gonna lower the prices because not many people are buying their cards?

it can go both ways, don't you think?
 
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Gaiff

Member
Or they are gonna lower the prices because not many people are buying their cards?

it can go both ways, don't you think?
What matters the most are margins and we've seen that people were willing to pay A LOT of $$$ for cards. $1600 for a 4090 is a pittance when they know they can sell out stocks even at $3000. If they lower the prices, their margins will take a huge hit. They will first clear out their Ampere stocks and then you might see Lovelace cards at semi-reasonable prices. I stress "might" and "semi".
 

GymWolf

Gold Member
What matters the most are margins and we've seen that people were willing to pay A LOT of $$$ for cards. $1600 for a 4090 is a pittance when they know they can sell out stocks even at $3000. If they lower the prices, their margins will take a huge hit. They will first clear out their Ampere stocks and then you might see Lovelace cards at semi-reasonable prices. I stress "might" and "semi".
Well shit, thank god amd seems competitive this time around.
 

Warnen

Can he swing from a thread? Take a look overhead / Hey, there, there goes the Spider-Man
Wonder what a 4060 will be priced at
 

HoofHearted

Member
What matters the most are margins and we've seen that people were willing to pay A LOT of $$$ for cards. $1600 for a 4090 is a pittance when they know they can sell out stocks even at $3000. If they lower the prices, their margins will take a huge hit. They will first clear out their Ampere stocks and then you might see Lovelace cards at semi-reasonable prices. I stress "might" and "semi".
That's because the source of what was driving up the demand (mining) has drastically changed.

Profit margins are adjustable.

Eventually the number of people willing to shell out $1600+ for what equates to a non-essential "toy" or hobby for many will dwindle..

Especially once there are alternative choices (AMD) out in the market that provide a much friendlier price/performance entry point...

IMHO - it'll be interesting to see how long AMD can continue to hold the 79xx at the MSRP target - as I expect that overall demand for these GPUs in generall are going to be significantly less than it has been for the past few years for the foreseeable future.
 

Reallink

Member
This is bad. Very bad. They can't allow their stocks to tank so they will overcharge us to maintain high margins and satisfy their investors.

4090's are in stock fairly regularly though.

Oh really? You might want to let the stock trackers know, who have an entire month's history of 1 - 2 minute sell outs (which are actually instantaneous sell outs, cause 1-2 minutes just so happens to be how long it takes retail product pages to update, and trackers to log it).
 
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kiphalfton

Member



Also just like all the baby boomers, Jensen retiring can't come soon enough. Granted he'll probably be replaced by somebody just as bad, but one can hope that isn't the case.
 
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kiphalfton

Member
Ever heard of ebay?

https://www.ebay.com/sch/i.html?_from=R40&_trksid=p2380057.m570.l1313&_nkw=rtx+3090&_sacat=0

You can see several RTX 3090 cards going for less than $600, from sellers with >200 ratings, 100% positive.
Switch to RTX 3080 and you'll see lots of cards going for $350-400.

The used market is flooded with mining cards, and they are probably in the millions indeed.


With a $550 used RTX 3090 being good for pretty much any game at 4K, the 4080/4090's value proposition is indeed ridiculous, IMO.

Lol, the price you quoted is for active listings which means fuck all. And those are appear to be for "parts only".

Sold listings for working cards are going for $750 upwards to $1k.

https://www.ebay.com/sch/i.html?_fr...LH_Complete=1&LH_Sold=1&LH_ItemCondition=3000
 
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