Nvidia (NVDA -6.30%) is a powerhouse in the data center and gaming industries, and investors have come to expect strong financial results on a consistent basis. Unfortunately, the chipmaker released its preliminary second-quarter earnings report on Monday, and the results were disappointing.
Nvidia had previously forecast $8.1 billion in total revenue, but that figure has been cut to $6.7 billion, reflecting a 19% decline compared to last quarter and just 3% growth compared to last year. Management placed the blame primarily on weaker gaming sales, citing a tough macroeconomic environment, but Nvidia noted that supply chain disruptions were also a headwind to data center revenue.