Nvidia Reports Second-Quarter Revenue Highs, Crypto Mining Cards Underwhelm

Share Article
In Brief
  • Graphics card producer Nvidia generated record revenue of $6.51 billion, according to its second quarter financial results.

  • This figure is up 68% from a year earlier and up 15% from the previous quarter.

  • However, sales in its crypto mining segment fell below expectations, achieving only $233 million of the anticipated $400 million.

  • promo

    Join the BIGGEST ICO ever launched in Spain: Buy B2M now.

The Trust Project is an international consortium of news organizations building standards of transparency.

Graphics card producer Nvidia generated a record revenue of $6.51 billion, according to its second-quarter financial results.

Sponsored



Sponsored

Exceeding Wall Street expectations of $6.3 billion, this figure is up 68% from a year earlier and up 15% from the previous quarter. Out of that revenue, the company generated $1.5 billion in earnings. This was largely bolstered by sales in gaming, data center technology, and professional visualization equipment platforms. 

The company highlighted a record 85% growth in its gaming segment to $3.06 billion. It largely accredited this bump to the introduction of the new GeForce RTX 3080 Ti and RTX 3070 Ti gaming chips. These chips were newly designed to have their cryptocurrency mining capabilities compromised, being marketed exclusively to gamers. 

Sponsored



Sponsored

Underwhelming crypto results

To complement this, Nvidia also began producing cryptocurrency-mining processors (CMPs). These chips are less sophisticated than graphics cards and optimal for mining. The company also decided to create crypto-exclusive products after experiencing a boom-and-bust shock in 2017 that severely affected its valuation. However, sales in this crypto segment fell below expectations of $400 million, only achieving $266 million, over 33% lower than expectations. 

These results are significant for the future of the company’s CMP development. The company was hoping to gauge how much exposure it has to cryptocurrency mining; another outcome of the product segmentation. However, due to the underwhelming result, Nvidia CFO Colette Kress said that it expects a “minimal contribution” from its CMP sales going forward.

Exceeded expectations

Earlier this week, Kress reiterated the $400 million crypto chip forecast the company had predicted in the spring. This would have been more than doubled its first-quarter revenue of $155 million. 

Meanwhile, BMO Capital Markets analyst Ambrish Srivastava had expected a crypto revenue of $450 million. Indeed, his estimate for the first quarter of $650 million was also well above the $155 million Nvidia reported solely for its mining chips.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

Follow Author

Market signals, studies and analysis! Join our Telegram Today!

Go

Bit2Me ICO JUST STARTED! Buy B2M token now.

Buy now!

Market signals, studies and analysis! Join our Telegram Today!

Go