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After showing off a sharp reduction in profit, executives at the chipmaker forecast a revenue shortfall in the current quarter.
For the current quarter, analysts expect earnings of 85 cents a share on revenue of $6.94 billion, according to FactSet.
Net income for the second quarter was $656 million, or 26 cents a share, compared with $2.37 billion, or 94 cents a share, a year ago. Excluding stock-based compensation expenses and other items, adjusted earnings were 51 cents a share, compared with 1.04 a share a year ago.
In the same quarter of the previous year, revenue was $6.51 billion.
The analysts had predicted 50 cents a share. The company warned of a shortfall due to weak gaming sales. That is on top of the $500 million that was pulled from its second-quarter revenue forecast.
Spending on gear and games for the PC has come back to earth after a two-year surge. As a result of the drops in the price of cryptocurrencies, mining is less profitable and the use of cards by miners has increased.
Data-center sales rose 61% to $3.81 billion, while gaming sales declined 33% to $2.04 billion from a year ago.
The analysts had forecast $2.02 billion in gaming sales and $3.81 billion in data center sales after the earlier warning.
After hours, shares declined 3%, following a small rise in the regular session.
"We are navigating our supply chain transitions in a challenging macro environment and we will get through this," said Jensen Huang, founder and chief executive.
The next billion-dollar business is expected to be automotive. The Data Center business is being driven by advances in artificial intelligence, while other fields are being accelerated.
The company's shares have fallen over the last year. The PHLX Semiconductor Index SOX is down 28% year to date, the S&P 500 index is down 13%, and the COMP is off 21%.
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