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

Though digital currencies have skyrocketed in worth all year long, Nvidia has not made any important income 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 mentioned CMP gross sales fell from $266 million within the second quarter to $105 million in Q3, which resulted in October.

Nvidia claims to have made $526 million in income all through the product’s existence, roughly 3% of the entire income of $19.27 billion over the identical interval. The corporate’s total revenue has been pushed nearly completely by gaming, information middle {and professional} visualization tools gross sales.

Final quarter was no completely different by way of CMP gross sales revenue. 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 goal for the second quarter of 2021.

Through 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 offered CMPs price $266 million, wanting its aim by a one-third margin.

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Whereas CMP has but to realize important traction, Nvidia’s income haven’t been harmed. Its worth is up nearly 123% this 12 months. General gross sales have been up 50% 12 months over 12 months, and $3.2 billion was generated in a single quarter by promoting graphics playing cards to players and PC builders, in line with the corporate’s earnings launch on Wednesday.

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