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Nvidia just reported its fourth quarter and full-year earnings<\/a>, and it\u2019s not exactly<\/em> rosy \u2014 at least compared to pandemic highs. Last year<\/a>, Nvidia had record quarterly revenue of $7.64 billion, including $3 billion in pure profit. For Q4 of its fiscal 2023, the company forecast that it would see just $6 billion<\/a> in quarterly revenue in today\u2019s earnings results, and that\u2019s just about where it landed: $6.05 billion in revenue, down 21 percent, of which $1.4 billion was profit, down 53 percent. For the full year, it raked in $26.92 billion, almost identical to last year, though profit was down 55 percent.<\/p>\n<\/div>\n Remember: in 2021, $5 billion in revenue a quarter was a new Nvidia record<\/em><\/a>. Now it\u2019s the status quo: the company says it\u2019s expecting to see $6.5 billion next quarter, too.<\/p>\n<\/div>\n Nvidia\u2019s data center and automotive businesses were actually up this quarter, with record revenue for automotive of $294 million; the dip was largely in Nvidia\u2019s graphics business, particularly gaming, which were each down 46 percent. That gaming decline includes \u201clower shipments of SOCs for game consoles,\u201d which is code for \u201cNintendo isn\u2019t selling as many Switches anymore\u201d<\/a> \u2014 it\u2019s the only game console that uses an Nvidia chip. <\/p>\n<\/div>\n Like other chipmakers, Nvidia is shipping fewer GPUs to retailers and partners instead of slashing prices. The polite phrase is \u201clower sell-in to partners to help align channel inventory levels with current demand expectations.\u201d Nvidia also blamed disruptions in China due to covid and other issues.<\/p>\n<\/div>\n We\u2019re waiting to see if Nvidia\u2019s CEO Jensen Huang is optimistic that Nvidia might see a similar recovery \u2014 so far, he\u2019s simply stated that gaming is recovering. He spent most of the call hyping up Nvidia\u2019s potential for data center growth \u2014 because of the rise of large language models (LLMs) used to train AI systems like ChatGPT and Bing, which often run on GPU hardware from Nvidia. <\/p>\n<\/div>\n He also talked up Nvidia\u2019s work with Mercedes-Benz on \u201csoftware-defined vehicles,\u201d something many other automakers<\/a> and tech companies<\/a> are also pursuing, saying: \u201cYou can just imagine what it looks like if the entire Mercedes fleet on the roads today were programmable, you could OTA… the whole fleet of Mercedes would represent revenue generating opportunity.\u201d It\u2019s not clear whether every customer wants a software-updatable car, though: read our stories on how the future of cars is a subscription nightmare<\/a>, Volkswagen\u2019s buggy software<\/a>, and a software update we wrote about literally today<\/a> that temporarily turned one of the highest-rated EVs into a turtle.<\/p>\n<\/div>\n