Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Innovation

SANTA CLARA, CALIFORNIA - Nvidia (Photo by Justin Sullivan/Getty Images)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

Aug 19, 2022

Nvidia’s Decline Just a Dip for Chips 

Just after CHIPS Act passage, a Wall Street analyst is warning that Nvidia’s second-quarter revenue is even lower than expected. 

Key details
A Bank of America Global Research analyst Vivek Arya is warning that leading chipmaker Nvidia may cut its outlook in next week’s earnings call, saying that their lowered projections may still be too high. Nvidia is expected to discuss its financial situation on August 24 but is expected to fall short of its expected second-quarter outlook of $8.10 billion. A preliminary press release from August 8 announced $6.70 billion in sales in the last quarter. 

Why it’s important
The long-term growth for semiconductors in the U.S. is likely to be steady, given increasing demand and subsidies provided by the CHIPS Act. 

Nvidia is just one of several companies warning that the chip industry is in temporary decline. Semiconductor sales decreased from 26% growth in 2021 to 7.4% this year. “CEOs are worried that an oversupply of chips will drag down sales and profits for the rest of 2022 and into 2023. Consumers, returning to normal life in this stage of the pandemic and worried about inflation, are buying fewer consumer electronic devices, lowering demand for the semiconductors that power them,” reports Fortune. 

Intel warned in July that second quarter sales fell 22% to $15.3 billion. “It was its biggest revenue drop in more than a decade. The company blamed a rapid decline in economic activity for its sagging sales as it forecast a 10% decline in overall PC sales this year,” says The Wall Street Journal. Intel has warned that PC sales may decrease 10% since last year. 

Backing up a bit
President Joe Biden signed the CHIPS and Science Act on August 9 with bipartisan support, which will invest $280 billion into innovation for artificial intelligence, robotics, data, and other computing technologies. The bill sets aside $52.7 billion for semiconductor research and manufacturing. 

“The aim of the CHIPS and Science Act is to advance and strengthen American manufacturing capabilities and supply chains, while investing in the sciences and in research and development of various technologies, with the goal to build a stronger, more diverse and technically adept workforce moving forward. The hope is that these investments will bolster the American economy and potentially national security in the longer term,” says Forbes. 

The CHIPS and Science Act will partially divert production away from Taiwan and China. The decreased sales mean issues for investors and shareholders in the short term until demand rises. But since it takes years to design and build semiconductor manufacturing plants, new supply is not likely to appear until 2025.

Notable quote
“We believe our long-term gross margin profile is intact. We have slowed operating expense growth, balancing investments for long-term growth while managing near-term profitability. We plan to continue stock buybacks as we foresee strong cash generation and future growth,” says Nvidia CFO Colette Kress.

Home / News / Nvidia’s Decline Just a Dip for Chips 
Share
FacebookTweetEmailLinkedIn

Related Stories

61% Of Americans Are Living Paycheck-To-Paycheck 

by Tyler Hummel Leaders Staff
Markets

Sep 8, 2023

Nearly two-thirds of Americans are feeling pinched by inflation. 

Key Details

  • LendingClub’s newest research shows that 61% of adults lived paycheck-to-paycheck in July 2023, increasing from 59% in July 2022. 
  • Even with inflation decreasing from 8.5% to 3.2% in 12 months, consumers still struggle to get by.  
  • A portion of this is attributed to irresponsible spending, with 21% of survey respondents saying nonessential spending is responsible for their financial issues. 
  • Low-income consumers—making less than $50,000 per year—were among the hardest hit by tightening wallets, Fortune reports. 
  • Bankrate’s Annual Emergency Fund Report earlier this year found that 57% of Americans cannot afford a $1,000 emergency. 

Go deeper

FacebookTweetEmailLinkedIn

Google Cracks Down On A.I. Election Ads

by Tyler Hummel Leaders Staff
Tech

Sep 7, 2023

Political campaigns using artificial intelligence (AI) generated content must disclose this information in Google and YouTube content. 

Key Details

  • Google has revealed a new disclosure policy that will force election advertisers to label AI content distinctly from real content. 
  • As of mid-November, generative AI content must receive a label to make it clearly identifiable to avoid spreading election misinformation. 
  • Google’s digital ad business joins companies like Meta Platform’s Facebook and Instagram in cracking down on deep fakes and spreading misinformation. 

Go deeper

FacebookTweetEmailLinkedIn

Vivek Ramaswamy’s Anti-ESG Firm Is Worth $1 Billion 

by Tyler Hummel Leaders Staff
Environment

Sep 7, 2023

The third most popular GOP presidential candidate has built his name fighting “wokeness”—and that reputation is paying off for his asset management company. 

Key Details

  • Ohio-based Strive Asset Management is an anti-activism fund company that promises investors higher-quality returns and investments.  
  • It was partly founded by Peter Thiel and Bill Ackman to rival investors at environmental, social, and governance (ESG)-friendly firms. 
  • On Tuesday, the firm announced that its accumulated assets now exceed $1 billion, slightly more than a year after it launched in 2022. 
  • The company is also currently facing lawsuits from two former employees arguing that it mistreats staff and engages in securities violations.

Go deeper

FacebookTweetEmailLinkedIn
Investing

Sep 7, 2023

Bill Gates Makes a $96.6 Million Bud Light Bet

by Tyler Hummel Leaders Staff
Cryptocurrency

Sep 6, 2023

Cathie Wood Bets Bullish On Big Tech 

by Tyler Hummel Leaders Staff
Some U.S. companies are finding it easier to hire help, after a rough few years
Hiring

Sep 6, 2023

Promotions Can Increase the Number Of Employees Quitting 

by Tyler Hummel Leaders Staff

Recent Articles

Business

Sep 18, 2023

25 Recession-Proof Jobs That Keep People From Getting Laid Off at Work

Learn what the safest jobs are during an economic downturn

Leadership

Sep 14, 2023

Maladaptive Daydreaming Signs + 4 Ways to Manage Them

Maladaptive daydreaming involves daydreams that interfere with daily functioning

Hiring

Sep 13, 2023

40 Smart Questions to Ask at the End of an Interview to Get Hired

Impress hiring managers with these thoughtful questions

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2023 Leaders.com - All rights reserved.

Search Leaders.com