News NVIDIA 3Q22 Earnings

[Hitman928]

Revenue and profit down Y/Y. Projected 4Q revenue expected to be basically flat ($6B) from 3Q. More details to come.

revenue for the third quarter ended October 30, 2022, of $5.93 billion, down 17% from a year ago and down 12% from the previous quarter.

NVIDIA Announces Financial Results for Third Quarter Fiscal 2023

seekingalpha.com

*Note, Nvidia's financial schedule is 1 year ahead of calendar year so officially for Nvidia, they call this the 3Q23 results.

 

[Hitman928]

Table showing Y/Y and Q/Q comparisons.



Data center revenue ($3.83B) was up 31% Y/Y and 1% Q/Q.

Gaming revenue ($1.57B) was down 51% Y/Y and 23% Q/Q.

Pro. Visualization ($0.2B) was down 65% Y/Y and 60% Q/Q.

Auto and embedded ($0.251B) was up 86% Y/Y and 14% Q/Q.

 

[Stuka87]

Clearly, just as nVidia said, mining had no real impact on their sales /s

 

[KompuKare]

Any way to get a stock on hand figure from their results?

If we knew how much inventory they and their AIBs are sitting on, me might be able to tell when or if any sensibly priced 4000 series cards are due.

Margins already way down before TSMC's 4nm was in the mix indicates that they won't be keen to cut margins further, but hopefully if consumers sure show restraint (if!) they'll have no choice but to offer better margins. Even though going all out RT (as the 4090 more or less is) seems took have meant that for the transistors spent, Ada doesn't look that impressive for raster.

 

[BFG10K]

Just wait until their financials get stung with burning connector lawsuits.

 

[Dribble]

You can see that Nvidia is no longer primarily a gaming company. Gaming only kept up due to mining and mining is not gaming it's really more data centre.

 

[jpiniero]

Any way to get a stock on hand figure from their results?

If we knew how much inventory they and their AIBs are sitting on, me might be able to tell when or if any sensibly priced 4000 series cards are due.

Obviously from the results they are still mostly burning through the existing stock.

As for sensibly priced 4000 series cards... depends on what you mean. Expect the performance/$ increase to be minimal at best below the 4070 Ti.

 

[KompuKare]

Obviously from the results they are still mostly burning through the existing stock.

As for sensibly priced 4000 series cards... depends on what you mean. Expect the performance/$ increase to be minimal at best below the 4070 Ti.

Well, I'm really hoping that Nvidia reduces their prices so I can buy an AMD card for less!

 

[Hitman928]

Any way to get a stock on hand figure from their results?

If we knew how much inventory they and their AIBs are sitting on, me might be able to tell when or if any sensibly priced 4000 series cards are due.

Margins already way down before TSMC's 4nm was in the mix indicates that they won't be keen to cut margins further, but hopefully if consumers sure show restraint (if!) they'll have no choice but to offer better margins. Even though going all out RT (as the 4090 more or less is) seems took have meant that for the transistors spent, Ada doesn't look that impressive for raster.

They still have quite a bit of inventory on hand:



This is a $1B increase in inventory from the previous quarter.

Edit:

From the earnings call, they say the increase is due to build up for soon to release products.

Now looking at our inventory that we have on hand and the inventory that has increased, a lot of that is just due to our upcoming architectures coming to market, our Ada architecture, our Hopper architecture and even more in terms of our networking business. We have been building for those architectures to come to market

I'm not sure I fully believe them.

 

[jpiniero]

Mobile Ada I could see launching at CES and products available with it soon thereafter.

 

[Hitman928]

Mobile Ada I could see launching at CES and products available with it soon thereafter.

There is definitely inventory build up for soon to release products, I just think that they are using this as a cover to gloss over how much of their inventory is old stock. Similar to how they pretended like their huge increases in "gaming" sales weren't related to mining.

 

[Hitman928]

They also wrote down $702M in inventory in 3Q which they are saying is mostly due to data center demand falling because of the China export restrictions:

Most of that, primarily, all of it is related to our data center business, just due to the change in expected demand looking forward for China. So, when we look at the data center products, a good portion of this was also the A100, which we wrote down.

Again, I'm sure there's a lot of truth to that, but when data center revenue overall rose 31% Y/Y and gaming fell 51% Y/Y, it's hard to believe that gaming inventory wasn't a significant portion of that write down.

 

[NTMBK]

From the earnings call, they say the increase is due to build up for soon to release products.



I'm not sure I fully believe them.

They very specifically said "a lot of that", and not "the majority of that". That sounds to me like a technically true statement that is still intended to indicate the truth, without lying to investors.

To be fair though, most of the excess GPUs won't actually be on Nvidia's books. They will be in the warehouses of retailers and AIB manufacturers.

 

[coercitiv]

They very specifically said "a lot of that", and not "the majority of that". That sounds to me like a technically true statement that is still intended to indicate the truth, without lying to investors.

A lot of what Nvidia says is true!