- Famous graphics card giant NVIDIA released the financial results for the three months which ended July 31.
- The company experienced a decline in revenue by 19% from quarter to quarter and a net income drop of 59%.
- Members are still wondering about the amount of decline cryptocurrency mining has done to the gaming demand.
In a recent announcement, a prominent name in the industry of graphics cards, NVIDIA CFO Colette Kress, said that the company was unable to estimate minimized crypto mining demand which impacted its results in Q2 and also which fell short of analyst expectations.
The global leader in chips published its financial results for the three months ending July 31. It mentioned that revenue declined by 19% from quarter to quarter to $6.5 billion, while net income dropped by 59% to $656 million.
The revenue generated from its high-end GPUs for its gaming division fell 44% from the previous quarter to $2.04 billion; the company blamed it on “challenging market conditions.”
Kress, who was also appointed as the Executive vice president of the company, said that NVIDIA’s insight into how the cryptocurrency market influences consumer demand for their gaming products is limited:
Our GPUs are capable of cryptocurrency mining, though we have limited visibility into how much this impacts our overall GPU demand.
Adding further to the statement, she said currently, the company is unable to determine with certainty the amount to which decreased cryptocurrency mining led to the reduction in Gaming demand.
With the coming Ethereum merge on September 15, the network’s switch to proof-of-stake might further reduce the demand for cryptocurrency mining hardware. This can result in difficulty for cryptocurrency mining equipment such as NVIDIA’s CMP170 HX, which currently costs around $4,695.
Despite the fact that the chip giant’s graphic processing units (GPUs) were made for gaming, the recent high demand for cryptocurrency mining has contributed to leveling up the company’s share price by 320% over the past five years.