Nvidia’s Q3 report reveals sharp decline in crypto mining chip sales

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Nvidia’s Q3 report reveals sharp decline in crypto mining chip sales

Though digital currencies have skyrocketed in worth all year long, Nvidia has not made any important earnings from its cryptocurrency mining processor (CMP) line.

In keeping with Nvidia’s third fiscal quarter report, the corporate’s CMP gross sales dropped by 60% sequentially in the newest quarter, with gross sales of the product line anticipated to drop even additional within the fourth quarter.

In its quarterly monetary assertion, Nvidia stated CMP gross sales fell from $266 million within the second quarter to $105 million in Q3, which led to October.

Nvidia claims to have made $526 million in income all through the product’s existence, roughly 3% of the full income of $19.27 billion over the identical interval. The corporate’s general earnings has been pushed virtually solely by gaming, knowledge heart {and professional} visualization tools gross sales.

Final quarter was no completely different when it comes to CMP gross sales earnings. As reported by Cointelegraph, Nvidia surpassed Wall Road expectations by producing over $6.5 billion in revenue. Nonetheless, it did not meet its crypto-mining GPU line profitability target for the second quarter of 2021.

In the course of the first-quarter earnings name, Nvidia CFO Colette Kress predicted a $400 million income for the corporate’s cryptocurrency mining processor line in Q2. Within the second quarter, Nvidia sold CMPs worth $266 million, wanting its purpose by a one-third margin.

Associated: Influx of crypto miners to Kazakhstan reportedly strains energy supply

Whereas CMP has but to achieve important traction, Nvidia’s earnings haven’t been harmed. Its worth is up virtually 123% this yr. General gross sales have been up 50% yr over yr, and $3.2 billion was generated in a single quarter by promoting graphics playing cards to avid gamers and PC builders, in accordance with the corporate’s earnings launch on Wednesday.

Nonetheless, the agency claims it could actually’t make certain that its growing gross sales of graphics playing cards aren’t linked to the cryptocurrency market. Throughout a name with analysts on Wednesday, Kress stated that: Our GPUs are able to crypto mining, although we do not have visibility into how a lot this impacts our general GPU demand.”