Nvidia recently published their financial report for Q1 2023, revealing an overall mixed outcome for the company in terms of revenue. While revenue increased to $7.2 billion this quarter from $6 billion last quarter, it showcased a YoY downturn of 13% from $8.3 billion in Q1 2022. Despite this statistic, Nvidia’s net income stood at $2 billion for the quarter, representing a 44% QoQ increase from $1.4 billion in Q4 2022 and a 26% YoY increase from $1.6 billion in Q1 2022.
Great GPUS but Gaming Revenues Drop
Although Nvidia’s overall gaming revenue increased by 22% this quarter to $2.2 billion from $1.8 billion last quarter, this also recorded a 38% YoY decline, where it was $3.6 billion in Q1 2022. Despite this drop, it remains to be Nvidia’s second most successful area of business, which follows the data center. However, this sector’s percentage has reduced drastically, accounting for only 31% of the entire company’s revenue in Q1 2023 as compared to 43% during the same period last year. Colette Kress, Nvidia CFO, explained that this YoY decrease reflects weak demand caused by a macroeconomic decline and lower shipments to normalize channel inventory levels. However, she explained that the company’s new GeForce RTX 40 Series GPUs for desktops and laptops based on the Ada Lovelace architecture triggered a sequential increase this quarter.
Nvidia expects record-breaking revenue of $11 billion in the next quarter. MarketWatch noted that this total is exceptional considering that Nvidia has not surpassed this in one year as a publicly traded company.
At the start of the year, Nvidia shared their objections towards Microsoft’s acquisition of Activision Blizzard. However, Nvidia has recently signed with Microsoft to carry the popular Call of Duty franchise to GeForce Now if the acquisition meets completion.