Nvidia is currently not doing much of trading with cryptocurrency miners. It has reported a “substantial decline” in revenue sheet of Nvidia due to which they are unable to transact with cryptocurrency miners in full swing.
Decline in earnings for Nvidia
In an announcement on Thursday, Colette Kress, CFO of the graphics card maker talked about the decline in second-quarter earnings of Nvidia. She stated that “GPU business revenue was $2.66 billion, up 40 percent from a year earlier.”
Moreover, there has also been a decline in the cryptocurrency GPU sales in gaming, professional visualization and data centre services “offset” sectors. According to her, the actual crypto-specific product revenue was $18 million. The revenue outlook of the company had anticipated cryptocurrency-specific products declining to approximately $100 million. Earlier the company had anticipated 2018 to be a meaningful year for cryptos. However, it is now projecting no contributions going forward.
Uncertain reasons for Decline
Earlier in March, the CEO of Nvidia had remarked that the company will have to ramp up its production to ensure that both miners and games have sufficient graphics cards. However, the company has downplayed the actual impact mining demand has had on its financials. According to Kress, it is very difficult for the company to quantify what and how much of its business was derived from miners versus traditional markets.
It was largely due to cryptocurrency miners that the chip producer had seen GPU demand rise over the last year. According to a representative of Nvidia, the company modelled the cryptocurrency profits company “approximately flat”. And much of the demand for its graphics cards came from the number of “amazing games that are out right now.”