Nvidia's stellar earnings streak came to an end on Thursday, as the graphics chipmaker's second quarter financial results show growth is slowing compared to previous quarters. The company also issued third quarter guidance below market estimates, sending its shares down after hours.
The Santa Clara, Calif.-based company delivered a Q2 net income of $1.1 billion, or $1.76 per share. Non-GAAP earnings were $1.94 per share on revenue of $3.12 billion, up 40 percent year-over-year. Wall Street was expecting to see earnings of $1.66 per share with $3.1 billion in revenue.
Shares of Nvidia were down more than five percent in after market trading.
Breaking down business segments, Nvidia said gaming revenue grew 52 percent from a year ago to $1.8 billion. Meanwhile, datacenter revenue grew 83 percent year over year $760 million. Nvidia's automotive business rang up $161 million in revenue and its professional visualization revenue came to $281 million.
Nvidia's CFO commentary also revealed that the company's OEM and IP revenue was down 54 percent from a year ago to $116 million, "driven by lower demand for cryptocurrency mining." Quarter over quarter this segment was down 70 percent.
In terms of guidance, Nvidia expects Q3 revenue of $3.19 billion, below market estimates for $3.34 billion in revenue.
Nvidia CEO Jensen Huang focused his comments on the company's recently released Turing GPU.
"Turing is the world's first ray-tracing GPU and completes the NVIDIA RTX platform, realizing a 40-year dream of the computer graphics industry," he said. "Turing is a giant leap forward and the greatest advance for computing since we introduced CUDA over a decade ago."