On Aug. 8, Nvidia (NASDAQ: NVDA) shook investors' confidence with a preliminary announcement of its results for the second quarter of fiscal year 2023 (ended July 31). In that bombshell announcement was the abysmal news that Q2 revenue would only rise 3% year over year, driven mainly by the fall of its gaming segment revenue, which was down 33% from a year ago.

Another item that worried me was this quote from Nvidia's CEO and founder Jensen Huang: "We took actions with our Gaming partners to adjust channel prices and inventory." This action caused Nvidia's gross margin to fall to 43.7%, a far cry from Nvidia's usual mid-60% range.

Although CFO Colette Kress stressed the company's "long-term gross margin profile is intact," many investors wanted to see if that was true when Nvidia released its final Q2 results and gave third-quarter projections.

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Source Fool.com