It’s been a rough quarter for Nvidia. The graphics card powerhouse has just revealed its financial results from the past quarter and Team Green has suffered a huge year-on-year drop in revenue.
Year-on-year revenue is down 17% for Nvidia, while operating income has suffered a huge fall, down 51% from $1.15 billion in Q2 FY2019 to $571 million in Q2 FY20.
It’s not great news for Nvidia, although they’ve opted to focus on the sequential results to find the good in the depleted earnings. Quarter-on-quarter, everything’s coming up Milhouse for Nvidia, although we typically like to look at year-on-year as the more reliable method to discern long term fiscal results.
“We achieved sequential growth across our platforms,” said Jensen Huang, founder and CEO of NVIDIA. “Real-time ray tracing is the most important graphics innovation in a decade. Adoption has reached a tipping point, with NVIDIA RTX leading the way. Nvidia-accelerated computing momentum continues to build as the industry races to enable the next frontier in artificial intelligence, conversational AI, as well as autonomous systems like self-driving vehicles and delivery robots.”
It’s not terrible news, of course, with Nvidia a far cry from being in the red, but it’ll come as a disappointing drop. Nvidia’s AI, automotive and professional visualisation division still managed to do the business and deliver year-on-year growth, although it was the game division which suffered the heaviest losses.
Again, as with the previous fiscal results, a lot of this is going to be attributed to the cryptocurrency slump. This time last year, Nvidia was still riding high on demanding for mining GPUs and then the bottom just fell out. This will have been exacerbated by a tepid GeForce RTX 20 series launch, although it appears the arrival of the GeForce RTX Super series has turned things around somewhat.