Nvidia Clears Its Crypto Cloud

Nvidia Falls 5% as Demand for Crypto-Related Chips Dries Up

Nvidia: 'Substantial Decline' in GPU Sales from Crypto Miners

"We're projecting no cryptomining going forward". "Actual crypto-specific product revenue was $18 million".

As CryptoGlobe covered, Nvidia raked in $289 million from cryptocurrency-related sales in this year's first quarter, and expected a 65% drop for the second quarter to $100 million. Investors have been attracted to the stock, pushing shares up 33 percent this year compared with a 6.4 percent advance by the Philadelphia Stock Exchange Semiconductor Index. Nvidia CEO Jen-Hsun Huang said in March that the company needed to ramp up its production to ensure that both miners and gamers had sufficient graphics cards.

Breaking down business segments, Nvidia said gaming revenue grew 52 percent from a year ago to $1.8 billion.

Analysts were troubled by Nvidia's gross margin forecast of 62.8 percent, slightly below expectations of 62.9 percent and possibly a result of putting more memory modules on its chips.

"Even with the weaker outlook, sales are growing 23% y/y, just as the sustainable revenue streams are beating consensus", SunTrust analyst William Stein said in a note sent out to clients after the results.

While data centers now account for a fifth of the company's revenue, Bloomberg noted, the gaming industry is still its main income source.

Despite the crypto market's slump, Nvidia was still able to raise its total revenue in Q2 to a record $3.12 billion, above analysts' estimate of $3.11 billion.

Rivals Intel Corp (INTC.O) and AMD have also been buoyed by the surge in demand from data centers, a rapidly expanding market powered by the explosive growth in mobile and Web apps. Cryptocurrency is believed to have had a big impact on the company's 40 percent growth in overall revenue in the second quarter, amounting to $3.1 billion. It also appears to be over, at least for now, and Nvidia does not anticipate that changing in the coming months. Earnings reached $1.76 per share, an increase of 91 per cent from past year, higher than estimates of $1.66 per share.

Latest News