Nvidia saw a “substantial decline” in revenue from cryptocurrency miners, the company announced in its second quarter results Thursday.
The chip manufacturer announced its Q2 results Thursday afternoon, noting that graphic processing unit (GPU) sales due to cryptominers had dropped significantly. Commentary by chief financial officer Colette Kress stated that while “GPU business revenue was $2.66 billion, up 40 percent from a year earlier,” it was “down 4 percent sequentially, led by record performance in gaming, professional visualization and datacenter, offsetting a substantial decline in cryptocurrency GPUs.”
“Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million. Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward.”
Through the rest of the year, she said, “revenue is expected to be $3.25 billion, plus or minus two percent. We are including no contribution from crypto in our revenue outlook.”
The chip producer has seen GPU demand rise over the last year, largely due to cryptominers. Nvidia CEO Jen-Hsun Huang said in March that the company needed to ramp up its production to ensure that both miners and gamers had sufficient graphics cards.
That being said, the company has downplayed the actual impact mining demand has had on its financials. Kress said it was “hard to quantify” how much of its business came from miners versus traditional markets.
During a previous earnings call, an Nvidia representative said the company modeled cryptocurrency profits “approximately flat,” adding that much of the demand for its graphics cards came from the number of “amazing games that are out right now.”