Nvidia's revenue exceeded expectations, the situation with profits is worse

Trading closed on Wednesday, after that Nvidia presented its third-quarter report. The figure exceeded analysts' expectations for the company's revenue, but fell short of expectations for earnings per share:

Revenue: $5.93 billion, compared with expectations of $5.79 billion.

Adjusted earnings per share: $0.58, compared to expectations of $0.70.

Nvidia is forecasting fourth-quarter revenue of $6 billion, lower than Wall Street expects. Analysts were expecting $6.09 billion.

This quarter, gaming revenues fell by 51% on a year-over-year basis. However, data center revenues rose by about 31% year-over-year.

The explosive growth of the industry during the pandemic has affected the electronics market. Demand for it declined this year, and chip sales fell. During the lockdowns, computers were purchased massively, but now consumers have no need for them. Companies have already fully provided a lot of remote and mixed workers with equipment.

CEO Jensen Huang informed investors about bringing inventories in line with consumer demand for chips. Nvidia has already cut their production.

During the pandemic, nominal retail prices for Nvidia graphics chips were hundreds of dollars cheaper than the prices under which they were sold. They were in very high demand, but consumers are getting back to their pre-pandemic lives and demand for the chips dropped and prices fell back to normal levels.