However, the company stated that data-center revenues might fall short of management’s expectations due to the ongoing supply-chain disruptions. An increase in the Hyperscale demand and the growing adoption in the inference market are likely to have been tailwinds during the to-be-reported quarter. Nonetheless, the continued strength in its data-center business on the growing adoption of cloud-based solutions amid the pandemic-induced work-from-home wave is expected to have boosted NVDA’s second-quarter revenues.

The company anticipates reporting Gaming segment revenues of $2.04 billion, down 33% year over year and 44% sequentially.

In its fiscal second-quarter preliminary results reported on Aug 8, the company stated that weak top-line performance expectation is primarily attributable to lower sell-in of gaming products, reflecting a reduction in channel partner sales due to macroeconomic headwinds. NVIDIA’s second-quarter performance is likely to have been negatively impacted by weakening demand for its chips used in the gaming end market.

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