Nvidia Stated About Crypto Mining Impact on its Q2 Results

• Nvidia’s revenue generated in Q2 continues to fall.
• The CFO of Nvidia reasoned a lack of demand for its products, due to the massive price drop of cryptocurrencies.

Nvidia’s CFO, Colette Kress, recently stated that the firm is unable to estimate the impact of crypto mining demand on its Q2 result. The results were quite low, as expected by the analysts.

Nvidia’s Q2 Result Analysis

Nvidia shared the results of the last three months, which ended on July 31. As per the results, it showed a 19% quarter-on-quarter drop in its revenue to $6.5 billion. Additionally, the net income dropped approximately 59% to $656 million.

The gaming division of Nvidia recorded a drop of 44% to $2.4 billion in its revenue, which includes the sale of GPUs in crypto mining. Nvidia denoted it as “challenging market conditions.”

What did the Company Head Say?

Colette Kress executive vice president and CFO of Nvidia said that the firm has limited visibility. She added, “Our GPUs are capable of cryptocurrency mining, though we have limited visibility into how much this impacts our overall GPU demand. We are unable to accurately quantify the extent to which reduced cryptocurrency Mining contributed to the decline in Gaming demand.”

She also points toward the demands of its products being reduced due to the current crypto price drop period. She further stated, “Volatility in the cryptocurrency market – such as declines in cryptocurrency prices or changes in the method of verifying transactions, including proof of work or proof of stake – has in the past impacted, and can in the future impact, demand for our products and our ability to accurately estimate it.”

Turning towards the share price of Nvidia, it noted an approx 5.89% drop in the last five days and is currently resting at the price of US$172.22.

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Andrew Smith

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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