Waning consumer demand for electronics is chipping into sales at the largest American semiconductor maker, reports The Wall Street Journal. Graphics chip maker Nvidia said its gaming-segment sales more than halved during the fiscal third quarter and its revenue dropped 17% to $5.93 billion as the boom in electronics demand during the pandemic wanes.
Nvidia is one of several chip makers, including Intel and Advanced Micro Devices, that have been hit hard this year by growing pressures on consumer spending, including high inflation and rising interest rates, and plummeting sales of personal computers.
One bright spot for Nvidia is an 86% jump in sales in its automotive division, which makes chips for car infotainment systems and is building up its capabilities in self-driving technology. But the segment is one of the company’s smallest and revenues of $251 million for the quarter weren’t enough to stem declines.
