Nvidia Stock Falls After Q2 Earnings, Sales Miss: CEO Says 'We Will Get Through This'

NVIDIA Corporation NVDA reported a second-quarter earnings and sales miss Wednesday, sending the stock lower in after-hours trading. 

The chipmaker also gave an update on its third-quarter guidance. Here are the key takeaways for investors.

What Happened: NVIDIA reported second-quarter revenue of $6.7 billion, up 3% year-over-year. The total came in shy of a Street estimate of $8.1 billion, according to data from Benzinga Pro. The revenue total was down 19% from the first quarter.

Earnings per share for the second quarter were 51 cents, missing a Street estimate of $1.25 per share.

The company reported revenue of $3.81 billion for its data center segment, up 61% year-over-year.

Gaming segment revenue was $2.04 billion, a decline of 33% year-over-year and a 44% drop from the first quarter.

The company’s professional visualization segment had revenue of $496 million, a decline of 4% year-over-year.

Nvidia's automotive segment had second-quarter revenue of $220 million, a 45% increase year-over-year.

“We are navigating our supply chain transitions in a challenging macro environment and we will get through this,” NVIDIA CEO Jensen Huang said.

In the second quarter, the company returned $3.44 billion to shareholders in the form of dividends and share buybacks. The company has $11.93 billion remaining on a share buyback plan that runs through December 2023.

The company said it plans to continue repurchases in the current fiscal year.

Related Link: Here's How To Trade NVIDIA Stock Before And After Q2 Earnings Print 

What’s Next: Huang said he remains excited for the future of Nvidia. 

“Accelerated computing and AI, the pioneering work of our company, are transforming industries. Automotive is becoming a tech industry and is on track to be our next billion-dollar business. Advances in AI are driving our Data Center business while accelerating breakthroughs in fields from drug discovery to climate science to robotics,” Huang said.

Nvidia is guiding for third-quarter revenue of $5.9 billion plus or minus 2%. The company sees gaming and professional visualization revenue declining and several partners reducing inventory levels ahead of new Nvidia products. The data center and automotive segments are expected to see growth in the third quarter.

NVDA Price Action: Nvidia shares were down 2.32% at $168.23 in after-hours trading Wednesday. 

Photo courtesy of Nvidia.