The company reported that data center chip sales rose 61% in the quarter, to $3.81 billion. The company’s graphics processing units are used extensively for this purpose. At the same time, Nvidia has suffered due to a steep drop in cryptocurrency prices that make “mining” less profitable. Spending on video games and hardware has fallen dramatically as people return to outdoor life. Nvidia has been hurt badly by a drop in personal computer sales, which have slumped following a two-year, pandemic-fueled surge. It further warned that COVID-19-related lockdowns in China and the war in Ukraine would knock an additional $500 million off its balance sheet.

The company told investors it was expecting a $1.4 billion revenue shortfall because of weaker gaming sales. The miss was not unexpected, though, as Nvidia had already warned in its preliminary earnings results earlier in the month that it was likely to fall short by a wide margin. The results were far below Wall Street’s expectations, with analysts modeling earnings of $1.26 per share on sales of $8.10 billion. Earnings before certain costs such as stock compensation came to 51 cents per share, with revenue rising to $6.7 billion, up from $6.51 billion a year earlier. The company reported net income for the second quarter of just $656 million, way down from the $2.37 billion profit it recorded a year earlier. That warning came after the company confirmed an expected sharp drop in revenue and profit in the quarter just gone. Nvidia Corp.’s stock took another hit today after the company offered a revenue forecast for the current quarter that fell short of analysts’ expectations.

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