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Nvidia’s Q3 report reveals a pointy decline in crypto mining chip gross sales


Nvidia’s crypto mining product line gross sales are anticipated to say no to “very negligible” within the fourth quarter.

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Nvidia’s Q3 report reveals a sharp decline in crypto mining chip sales

Though digital currencies have skyrocketed in worth all year long, Nvidia has not made any vital income from its cryptocurrency mining processor (CMP) line.

In accordance with Nvidia’s third fiscal quarter report, the corporate’s CMP gross sales dropped by 60% sequentially in the latest quarter, with gross sales of the product line anticipated to drop even additional within the fourth quarter.

In its quarterly monetary assertion, Nvidia stated CMP gross sales fell from $266 million within the second quarter to $105 million in Q3, which resulted in October.

Nvidia claims to have made $526 million in income all through the product’s existence, roughly 3% of the whole income of $19.27 billion over the identical interval. The corporate’s general revenue has been pushed virtually fully by gaming, knowledge heart {and professional} visualization tools gross sales.

Final quarter was no totally different by way of CMP gross sales revenue. As reported by Cointelegraph, Nvidia surpassed Wall Avenue expectations by producing over $6.5 billion in revenue. Nonetheless, it did not meet its crypto-mining GPU line profitability goal for the second quarter of 2021.

Through the first-quarter earnings name, Nvidia chief monetary officer Colette Kress predicted $400 million in income for the corporate’s cryptocurrency mining processor line in Q2. Within the second quarter, Nvidia bought CMPs price $266 million, wanting its objective by a one-third margin.

Associated: Inflow of crypto miners to Kazakhstan reportedly strains vitality provide

Whereas CMP has but to realize vital traction, Nvidia’s income haven’t been harmed. Its worth is up virtually 123% this yr. Total gross sales had been up 50% year-over-year, and $3.2 billion was generated in a single quarter by promoting graphics playing cards to players and PC builders, in accordance with the corporate’s earnings launch on Wednesday.

Nonetheless, the agency claims it can’t be sure that its rising gross sales of graphics playing cards aren’t linked to the cryptocurrency market. Throughout a name with analysts on Wednesday, Kress stated, Our GPUs are able to crypto mining, although we don’t have visibility into how a lot this impacts our general GPU demand.”

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