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Nvidia (NVDA) lowers Q2 2023 revenue guidance below Wall Street estimates

An update from Nvidia includes info on the company's Q2 2023 revenue guidance.

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As part of NVIDIA's (NVDA) earnings report for Q1 2023, it was revealed that Q2 2023 revenue guidance is lower than Wall Street estimates. More specifically, that revenue for Q2 2023 is expected to be $8.10 billion, plus or minus 2 percent. This includes an estimated reduction of approximately $500 million in relation to the war in Ukraine and lockdowns in China as a result of the COVID pandemic.

In the report from NVIDIA, the outlook for Q2 FY203 is shared including details like the GAAP gross margin for Q2 FY2023 sitting at 65.1 percent, and GAAP operating expenses at $2.46 billion. There's also a bulleted list that breaks things down even further in terms of the company's outlook for the second quarter of fiscal 2023.

  • Revenue is expected to be $8.10 billion, plus or minus 2%. This includes an estimated reduction of approximately $500 million relating to Russia and the COVID lockdowns in China.
  • GAAP and non-GAAP gross margins are expected to be 65.1% and 67.1%, respectively, plus or minus 50 basis points.
  • GAAP and non-GAAP operating expenses are expected to be approximately $2.46 billion and $1.75 billion, respectively.
  • GAAP and non-GAAP other income and expense are expected to be an expense of approximately $40 million, excluding gains and losses from non-affiliated investments.
  • GAAP and non-GAAP tax rates are expected to be 12.5%, plus or minus 1%, excluding any discrete items.

Outside of that, the earnings report was largely good, with a statement from CEO and Founder of NVIDIA, Jensen Huang, remarking upon aspects such as gaming achieving a record quarter, and how the company is gearing up with a wave of new products.

NVIDIA (NVDA) revenue guidance for Q2 2023 fell below Wall Street estimates

What are your thoughts on the earnings report from NVIDIA? Does it surprise you that the company's revenue guidance for Q2 2023 is lower than Wall Street estimates? Let us know in Chatty, and for more on Nvidia (NVDA), be sure to read through our coverage of the company's Q1 2023 earnings results beating revenue and EPS expectations.

Senior Editor

Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.

From The Chatty
  • reply
    May 25, 2022 1:47 PM

    Morgan Shaver posted a new article, Nvidia (NVDA) lowers Q2 2023 revenue guidance below Wall Street estimates

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      May 25, 2022 1:49 PM

      Well shit.

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        May 25, 2022 2:04 PM

        Based on your comments on a couple of our NVIDIA posts I'm going to go out on a limb and say you own the stock, haha.

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      May 25, 2022 2:12 PM

      This makes sense. Cryptomining is waning, supply chains are hurting... the bell is curving back down

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      May 25, 2022 2:14 PM

      nVidia stock was overpriced, especially compared to AMD which has had bombshell earnings time and time again. I never understood why people love nVidia so much over AMD.

      I've had THREE GeForce cards die on me over the years (since ~2000 or 01) and never ever had an Ati GPU artifact on me. Yeah the drivers aren't as good but nVidia is just over-hyped IMO.

      AMD/ATi FTMFW

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        May 25, 2022 2:47 PM

        Really shows the difference between being levered to Taiwan and Korea for chip fab versus China. That has been a large takeaway from this quarter's earnings results for me.

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        May 25, 2022 3:04 PM

        Nvidia has had bombshell earnings as well, repeatedly, for like two years now.

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          May 25, 2022 4:40 PM

          Their P/E ratio got way ahead of their own growth numbers. Not the company's fault at all, just expectations got too high.

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            May 25, 2022 6:26 PM

            Precisely. Whereas AMD consistently gets beat up...for what reason I can't fathom.

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              May 25, 2022 7:54 PM

              I would agree AMD is undervalued, but they get beat up for good reasons. They put out pretty shoddy technology (FSR, or their honestly pathetic attempts at matching nvidia's raytracing efforts, for example) along with terrible marketing and bad PR.

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        May 25, 2022 6:31 PM

        I've had enough issues with nVidia drivers that I've had to revert at least three times in the past three years due to performance issues or game crashes following an update. I like to update out of habit but if it ain't broke I won't rush to update anymore. Generally if it's a specific game they had to release drivers for then maybe.

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      May 25, 2022 3:29 PM

      That Crypto money tree isn't sprouting as many branches right now.

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      May 25, 2022 3:55 PM

      Hope this means that we'll actually able to buy the new Nvidia cards.

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