Nvidia stock drops on preliminary earnings warning

Nvidia’s Q2 earnings will be announced after at least two weeks, but the company has found its way to news headlines after its preliminary numbers were revealed on Monday and the results are not looking good. The gaming revenue is reported at $2.04 billion, a staggering 33.33 percent decrease from the previous year’s $3.06 billion.

The shortfall mirrors other gaming hardware companies, including Logitech, which reported a 12 percent drop compared to the same quarter last year, reflecting peak pandemic changes where consumers are done investing in all kinds of home equipment for work, play, and even exercise.

Gaming sales as a whole have dropped 13 percent in Q2 to $12.35 billion compared to last year, according to market research firm NPD. One anomaly for this period is AMD, which actually increased its gaming revenue 32 percent year over year.

For Nvidia, its numbers show a push back in consumer buying patterns toward 2020, when the company reported just $1.65 billion in gaming revenue in the same quarter.