Nvidia Reports Huge Decline In GPU Sales for Cryptocurrency Mining

Nvidia Falls 5% as Demand for Crypto-Related Chips Dries Up

Nvidia: 'Substantial Decline' in GPU Sales from Crypto Miners

The GPU segment offers processors, which include GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for AI utilizing deep learning, accelerated computing, and general objective computing; GRID provides power of NVIDIA graphics through the cloud and datacenters; DGX for AI scientists, researchers, and developers; and cryptocurrency-specific graphics processing units.

Total revenue rose 40 percent to $3.12 billion. OEM, on the other hand, decreased 54 percent year-over-year to $116 million due to lower cryptocurrency mining demand. These types of processors excel at making multiple small calculations at the same time, the type of capability that's well-suited for cryptotoken creation.

As CryptoGlobe covered, Nvidia raked in $289 million from cryptocurrency-related sales in this year's first quarter, and expected a 65% drop for the second quarter to $100 million. Instead, the total was $18 million and the company projects no revenue from those customers in the future. Suddenly that $190 million loss looks rather positive.

Nvidia Corp. has been flying high for years thanks to big demand for its graphics chips in gaming, high-performance computing and artificial intelligence, but that means even a small dip in altitude can upset investors.

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"Fueling our growth is the widening gap between demand for computing across every industry and the limits reached by traditional computing", Nvidia Chief Executive Jensen Huang (pictured) said in prepared remarks. Turing, as it's called, will also make its way into gamer and data centre chips. 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. The prospect of the new design coming later this year may be causing some to hold off on purchases.

Nvidia also stated that they were not expecting any sales related to the mining sector for the rest of this year.

Similarly, the company's revenue from the data-centers will spike by over 78 percent, bringing in about $740 million. Revenue surged to a record of $3.12 billion. That fell short of analysts' forecast of $3.34 billion.

With the quarter's results, Nvidia revenue is on course more than double from 2016.

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