Nvidia's Q2 revenue fell by 19%, and encryption mining chip revenue continued to decline

This article comes fromDecrypt, original author: Andrew Asmakov

Odaily Translator | Nian Yin Si Tang

This article comes from

, original author: Andrew Asmakov

Odaily Translator | Nian Yin Si Tang

Nvidia said the company's crypto mining hardware had a "limited" impact on its overall GPU demand in the second quarter of this year, with revenue falling to $6.5 billion in the three months ended July 31, 2022, compared with It was down 19% in the previous quarter.

The company's second-quarter revenue was significantly lower than Nvidia's May forecast of $8.1 billion.

Revenue in Nvidia's gaming division fell 44% from the previous quarter to $2.04 billion, which the company said was due to "tough market conditions."

Also, sales of its cryptocurrency mining processors (CMPs) were "very small," down from $266 million a year ago. Nvidia used the same term to describe CMP sales last quarter, when it noted that CMP was a drag on revenue for its "OEM and other" business unit.

Nvidia's chief financial officer Colette Kress said overall revenue in the "OEM and other" business unit fell 66% in the second quarter from a year earlier to $140 million, mainly due to lower notebook OEM sales. The "OEM and other" business segment contributed only about 2% of total revenue in the second quarter.

"Our GPUs are capable of cryptocurrency mining, although we don't know much about the impact of this on the company's overall GPU demand," said Colette Kress.

Kress also emphasized that falling cryptocurrency prices and users switching between different blockchain networks have affected demand for Nvidia products in the past.

"Volatility in the cryptocurrency market—such as declines in cryptocurrency prices or changes in transaction verification methods, including proof-of-work or proof-of-stake—has affected demand for our product in the past and may affect our ability to accurately estimate it in the future. ability,” Kress said.

The chipmaker's second-quarter net income fell 59% to $656 million.

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Nvidia's next steps

Nvidia expects revenue to decline sharply this quarter due to the downturn in the gaming industry. Shares of the company tumbled about 5% in after-hours trading on Wednesday.While Bitcoin miners primarily use specialized ASIC hardware, other proof-of-work blockchains, including Ethereum, Litecoin, and Zcash, can also be mined using Nvidia's GPU cards.。

However, ethereum is expected to switch to a greener proof-of-stake consensus algorithm next month, which could spell more trouble for the company's GPU sales.

Earlier this year, Nvidia was fined for failing to disclose the impact of crypto mining on the company's gaming business in two of its 2018 quarterly filings.$5.5 million fine paidIn 2018, the Nvidia GeForce GTX 580 for gamers was popular among crypto miners.

Launched last Octoberdisclose, priced at $4,695.