Home
News
- Nvidia is one of the biggest organizations manufacturing GPUs.
- They said that it has “limited visibility” on cryptocurrency mining impact during previous quarter’s revenues.
- Nvidia failed to report crypto’s influence on their revenue during 2018.
Nvidia Experiences Downfall In Q2 2022.
Nvidia stated that they have “limited visibility” into how much the cryptocurrency mining hardware of the company influenced its GPU demand in Q2 2022. The organization’s revenue slipped by 19% or 6.5 Billion USD from the past quarter. The firm anticipated 8.1 Billion USD during May 2022, which was comparatively higher than the current. But Nvidia failed to attain the expected feat.
Gaming division of the organization downsurged by 44% from the past quarter to 2.04 Billion USD, with the company quoting “challenging marketing conditions.” Colette Kress, the Chief Financial Officer of Nvidia, said that ‘their Graphic Processing Units can handle crypto mining processes. Still, it has not impacted that much on their overall GPU demand.’
As per Kress, the company was not able to quantify the extent to which decreased crypto mining influenced gaming demand. The CFO also shed light on the plunging cryptocurrency prices and folks switching between distinct blockchain networks have unbalanced the demand for Nvidia products previously.
Kress said that, ‘crypto market volatility — like plunge in digital asset prices or shift in algorithms to verify the transactions, involving proof-of-stake and proof-of-work — have impacted previously, and can do the same in the future, product demand and their ability to estimate it precisely. Nvidia’s net income plummeted 59% to $656 Million in Q2 2022.
Nvidia anticipates a steep drop in revenue during this quarter due to the heavy disturbance in the gaming sector. The organization’s stock prices fell down around 5% during after hours trading on Wednesday. Bitcoin miners require specialized ASIC hardware, other PoW blockchains like Zcash, Ethereum and Litecoin can be easily mined using Nvidia’s Graphic Processing Units.
Nvidia paid 5.5 Million in penalties earlier in 2022 following the company’s failure to reveal cryptocurrency mining impact on the gaming division in a couple of quarterly filings back in 2018. The Nvidia GeForce GTX 580 became popular among the miners the same year. The organization’s flagship GPU for mining the second biggest digital asset — Ethereum — CMP 170HX, went on sale during October previous year.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
