Nvidia released its second quarter financial results and reported a significant decrease in sales of products related to mining.
Presenting the report, Chief Financial Officer Colette Kress said that income from business graphics processor (the GPU) amounted to $2.66 billion, which is 40% higher than a year earlier, but 4% less than the previous quarter.
She clarified that record figures in games, professional visualization and data center services compensated a significant decrease in sales of graphics processors to cryptocurrency miners.
According to Colette Kress, Nvidia revenue projections suggested that the products related to cryptocurrencies would amount to about $100 million, and the actual revenue was $18 million. Before they expected the cryptocurrency segment to be significant for the year, but they will not plan its contribution to be as large anymore.
WHY IS IT IMPORTANT?
- Last year, Nvidia and its main competitor AMD fixed revenue growth due to high demand for high-end GPUs from the miners’ side. This led to a deficit of video cards. According to Jon Peddie Research, in 2017 cryptocurrency miners purchased over 3 million GPUs worth $776 million.
- In early 2018 Nvidia CEO Jen-Hsun Huang, said that the company needs to ramp up production of GPU seeing how it was popular with miners. AMD CEO Lisa Su announced similar plans.
- However, presenting the financial results of the II quarter at the end of July AMD also reported a decrease in sales of video cards for miners.