Nvidia: 'Substantial Decline' at GPU Revenue from Crypto Miners

The processor manufacturer has seen GPU demand increase throughout the past year, chiefly because of cryptocurrency miners. Nvidia CEO Jen-Hsun Huang said in March that the company needed to ramp up its manufacturing to make sure both miners and gamers had adequate graphics cards.

That said the company has downplayed the actual impact mining demand has had on its financials. Kress said it was”hard to quantify” how much of its business came from miners versus conventional markets.
In an announcement of its next quarter earnings Thursday afternoon, the graphics card manufacturer’s CFO, Colette Kress, said that although”GPU company earnings was $2.66 billion, up 40 percent from a year earlier,” it had been”down 4 percent sequentially.”

She added:

At the time, she said that record performance in gaming, professional visualization and datacenter services”offset” that a more substantial decrease in the selling of cryptocurrency GPUs.

During a previous earnings forecast an Nvidia representative said the firm modeled cryptocurrency gains”approximately flat,” adding that a lot of the demand for the graphics cards came from the amount of”awesome games which are out right now.”
Nvidia picture via jejim / Shutterstock
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“Our earnings outlook had anticipated cryptocurrency-specific products declining to about $100 million, while real crypto-specific merchandise revenue was $18 million. Whereas we had anticipated cryptocurrency to become purposeful for the calendar year, we are now projecting no contributions moving forward.”

Nvidia is currently reporting a”substantial decrease” in earnings as a result of decreasing earnings to cryptocurrency miners.