Nvidia issued the forecast just two weeks ago, warning that sales for the upcoming quarter would be significantly lower than expected. The company stated that the decreasing demand for chips used in gaming computers was due to “challenging market conditions.”
Fiscal third-quarter revenue will be about $5.9 billion, the company said late Wednesday in a statement. This week’s Nvidia stock is expected to be volatile, and the swings started on Monday.
Nvidia’s GeForce graphics processors are a must-have for high-end PC gamers seeking the most realistic gaming experience. The chips are also widely used by digital currency miners, but the cryptocurrency crash and adjustments to the mining process have dampened demand.
Combating of shortage of its cards
To counteract the worldwide card scarcity, Nvidia announced the start of its “Cryptocurrency Mining Processors” in February, with a focus on crypto miners. While sales of its graphics processing units helped drive revenue, Nvidia fell short of its forecast of generating $400 million in revenue in the quarter from mining-related cards. Sales of Nvidia’s crypto mining-related products totaled $266 million, the company reported.
Revenue from its data center and professional visualization platforms rose 35% and 156% respectively from the second quarter a year ago, while its gaming revenue increased by 85%.
Nvidia secures the gaming market with custom GPUs for crypto Miners
Since cryptocurrency started becoming more popular, many other industries have been impacted as well. One of these is the gaming industry, where one company, in particular, Nvidia, has struggled to keep up. Crypto mining requires a lot of resources and hardware, and the market for it is only getting bigger. The hardware market specializing in mining equipment could grow by nearly $3 billion in the next three years.
Based on the industry’s anticipated growth, we expect demand for graphics cards to remain strong. As more mining pools emerge, the need for goods tailored to a miner’s specific needs will increase. This is especially true for capable graphics processing units (GPUs) since the demand for these chips exceeds global production by a factor of two or three.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.