Nvidia Suffered Losses Worth A Billion Dollars Since Last Year
By Nvidia suffered losses worth $1.02 billion, while AMD continues to thrive by gaining profits worth a billion dollars.
Key Points:
- The yearly first-half revenue of Nvidia is down from $3.06 billion in 2021 to $2.04 billion in 2022.
- This 33% decrease in revenue earned has been due to the Covid pandemic and the shortage of semiconductors globally.
- Primary rivals AMD on the other hand, have seen growth with profits of more than a billion dollars in the same time frame.
Graphics card manufacturer Nvidia has reportedly suffered a downfall of $1.02 billion in its annual first-half earnings compared to last year. Last year, the company had first-half revenue of $3.06 billion, 33% more than this year’s $2.04 billion.
Jensen Huang, the founder and CEO of Nvidia, has stated that such a downfall in revenues has primarily been due to the global semiconductor shortage. He has also mentioned that the “ongoing macroeconomic certainty” is another reason for such a decline in revenues earned.
He also stated that “Our gaming product sell-through projections declined significantly as the quarter progressed. As we navigate these challenges, we remain focused on the once-in-a-generation opportunity to reinvent computing for the era of AI.”
On the other hand, AMD seems to not suffer from such conditions. Their gaming business of selling graphics cards has seen an increase in revenues. This can be tied to the fact that the company has several partnerships with consoles like Sony’s Playstation and Microsoft’s Xbox, both of which make use of AMD graphics cards.
CEO of AMD Lisa Su said that “We delivered our eighth-straight quarter of record revenue based on our strong execution and expanded product portfolio. We see continued growth in the back half of the year highlighted by our next-generation 5nm product shipments.”
In the total revenue of the company, AMD has earned $63.6 billion in revenue, $1.7 billion of which comes from the sale of graphics cards. In addition, most modern gaming laptops now come bundled with AMD CPUs and GPUs. However, Nvidia still dominates the premium market with its flagship RTX series of high-end graphics cards.
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