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On Wednesday night Nvidia released second-quarter results. We knew these numbers would be ugly because they warned us two weeks ago. I covered that special update here. Basically, the high demand for high-end chips from crypto miners and gamers has fallen faster than expected.
Group revenues dropped 19% versus last quarter and earnings fell 59%. Ouch! They are working incredibly hard to manage these supply chain booms and busts. This is something that many companies are dealing with post-Covid.
More importantly, data center revenues soared 61% from a year ago. That division now makes up 57% of all sales. Businesses like AWS and Azure are buying lots of Nvidia HGX A100 chips to put into new data centers. That's the world's most powerful accelerated server platform for machine learning.
The pace of innovation is not slowing down. At next month's GPU Technology Conference (GTC) they will announce breakthroughs in AI and the metaverse. If you believe the metaverse will be a big part of our future, Nvidia will be one of the biggest benefactors. Nvidia is currently the biggest constituent of the Metaverse ETF. I wonder how the Zuck feels about that?
We are happy to ride through the cycles that this industry faces because we feel that the products Nvidia makes are crucial for the digital future.
