Chief Financial Officer Colette Kress said last quarter that cryptomining revenue in the second quarter would be only $100 million, so the more precipitous decline means it will be almost nil in the future.
The cryptocurrency graphics card boom might be at an end.
Raymond James' Chris Caso is optimistic Nvidia's eighth-gen GPU architecture, which the company says "is the result of more than 10,000 engineering-years of effort", will drive the company's sales later this year.
A "sharp decline" in this sector led to a year-on-year drop of 54 per cent in revenue in the GPU specialist's OEM segment and a 70 per cent decline quarter-to-quarter.
"Growth across every platform - AI, Gaming, Professional Visualisation, self-driving cars - drove another great quarter", Jensen Huang, Nvidia's chief executive, said in a press release.More news: Turkey, France to act against US sanctions
Nvidia's CFO Colette Kress said that the company had previously anticipated cryptocurrency to be meaningful for the year, but is now projecting no contributions going forward. These types of processors excel at making multiple small calculations at the same time, the type of capability that's well-suited for the creation of ethereum and other crypto tokens. Three months ago, Nvidia said it generated $289-million in sales from cryptocurrency miners, but warned that demand was declining rapidly and might fall by as much as two-thirds.
Revenue: $US3.12 billion where analysts had expected $US3.11 billion. The company provided EPS guidance of $1.85-2.02 for the period, compared to the Thomson Reuters consensus EPS estimate of $1.99. Turing, as it's called, will also make its way into gamer- and data-center chips. The company's net profit was of $1.1 billion, or $1.76 a share, well above its $583 million, or 92 cents, from a year ago.
As reported by Market Watch, a FactSet poll suggests that the company will be able to offset any diminishing returns via the increased use of its hardware in gaming devices and in data centers.
Despite the crypto downturn NVIDIA is doing alright with recent revenue growth from its gaming business and the launch of its new Turing architecture to attract video producers. Operating expenses ended up at $818 million, up by 33 percent compared to the a year ago and up by six percent from the previous quarter.