NVIDIA Corporation (NASDAQ:NVDA) stock rose 2.21% (As on August 25, 11:12:24 AM UTC-4, Source: Google Finance) though the company forecast a sharp drop in revenue in the current quarter on the back of the weaker gaming industry. Data Center’s second-quarter revenue was $3.81 billion, up 61% from a year ago and up 1% from the previous quarter. Gaming’s second-quarter revenue was $2.04 billion, down 33% from a year ago and down 44% from the previous quarter. The company has added 30 RTX ON games and apps — including A Plague Tale: Requiem, Evil Dead: The Game and F1 22 — bringing the total available to 280+. Professional Visualization’s second-quarter revenue was $496 million, down 4% from a year ago and down 20% from the previous quarter. Automotive’s second-quarter revenue was $220 million, up 45% from a year ago and up 59% from the previous quarter. The company has announced rollout plans of new model vehicles using the DRIVE Orin compute platform by partners NIO, Li Auto, JIDU, and Human Horizons, as well as Pony.ai’s use of DRIVE Orin across its line of self-driving trucks and robotaxis.

NVDA in the second quarter of FY 22 has reported the adjusted earnings per share of 51 cents, missing the analysts’ estimates for the adjusted earnings per share of $1.26, according to Refinitiv. The company had reported the adjusted revenue growth of 3 percent to $6.7 billion in the second quarter of FY 22, missing the analysts’ estimates for revenue of $8.10 billion.

Additionally, during the second quarter of fiscal 2023, NVIDIA returned to shareholders $3.44 billion in share repurchases and cash dividends, following a return of $2.10 billion in the first quarter. The company has $11.93 billion remaining under its share repurchase authorization through December 2023. NVIDIA plans to continue share repurchases this fiscal year. NVIDIA will pay its next quarterly cash dividend of $0.04 per share on September 29, 2022, to all shareholders of record on September 8, 2022.

For the third quarter of fiscal 2023, the revenue is expected to be $5.90 billion, plus or minus 2%. Gaming and Professional Visualization revenue are expected to decline sequentially, as OEMs and channel partners reduce inventory levels to align with current levels of demand and prepare for NVIDIA’s new product generation. The company expects that decline to be partially offset by sequential growth in Data Center and Automotive. GAAP and non-GAAP gross margins are expected to be 62.4% and 65.0%, respectively, plus or minus 50 basis points. GAAP and non-GAAP operating expenses are expected to be approximately $2.59 billion and $1.82 billion, respectively.