China’s EV slowdown drags down Nvidia’s ‘next billion-dollar business’
The automotive segment primarily sells chip systems for assisted driving. Nvidia CEO Jensen Huang touted it last year as the company’s “next billion-dollar business.“
But the unit’s growth has slowed this year. Huang didn’t repeat such projections in the latest earnings call.
In the three months ended July 30, automotive revenue fell by 15% from the prior quarter — the first sequential decline in more than a year.
The $253 million segment revenue was also well below the $309.3 million forecast by a FactSet analyst poll.
“The sequential decrease primarily reflects lower overall auto demand, particularly in China,” Nvidia’s Chief Financial Officer Colette Kress said in a statement on the quarterly results.
She said demand for self-driving systems helped automotive revenue grow by 15% from the year-ago period.
Published August 25, 2023 2:23PM