Nvidia cites limited visibility into impact of crypto mining on Q2 results
Nvidia's CFO says declining crypto prices and changes in consensus mechanisms have in the past had a impact on demand for its products and on the company's ability to estimate it.< /p>
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CFO of graphics card giant Nvidia, Colette Kress, said the company was unable to estimate that reduced demand for crypto mining had an impact on its second quarter results. quarter, which fell short of analysts' expectations on Wednesday.
The chip giant released its financial results for the three months ended July 31, which showed a 19% drop in quarter-over-quarter revenue to $6.5 billion, while net profit fell 59% to $656 million.
Revenue from its gaming division, which includes sales of its high-end GPUs, fell 44% from the previous quarter to $2.04 billion, which Nvidia attributed to "difficult market conditions".
Kress, who is also the company's executive vice president, said Nvidia has limited visibility into how the crypto market is affecting demand for its gaming products:
"Our GPUs are capable of mining cryptocurrencies, although we have limited visibility into the impact of this on our overall GPU demand."
“We are unable to quantify precisely to what extent the reduction in cryptocurrency mining has contributed to the decline in demand for games,” she added.
While the chip giant's graphics processing units (GPUs) were designed for gaming purposes, strong demand for crypto mining business in recent years has contributed to a 320% increase of the company's share price over the past five years.
Kress however said that falling crypto prices and changes in the consensus mechanism have in the past impacted the demand for his products and the ability to estimate it:
“Cryptocurrency market volatility – such as declining cryptocurrency prices or changes in the method of transaction verification, including proof-of-work or proof-of-stake – has in the past had and may in the future impact demand for our products and our ability to accurately estimate it."
Nvidia's CFO says declining crypto prices and changes in consensus mechanisms have in the past had a impact on demand for its products and on the company's ability to estimate it.< /p>
New
CFO of graphics card giant Nvidia, Colette Kress, said the company was unable to estimate that reduced demand for crypto mining had an impact on its second quarter results. quarter, which fell short of analysts' expectations on Wednesday.
The chip giant released its financial results for the three months ended July 31, which showed a 19% drop in quarter-over-quarter revenue to $6.5 billion, while net profit fell 59% to $656 million.
Revenue from its gaming division, which includes sales of its high-end GPUs, fell 44% from the previous quarter to $2.04 billion, which Nvidia attributed to "difficult market conditions".
Kress, who is also the company's executive vice president, said Nvidia has limited visibility into how the crypto market is affecting demand for its gaming products:
"Our GPUs are capable of mining cryptocurrencies, although we have limited visibility into the impact of this on our overall GPU demand."
“We are unable to quantify precisely to what extent the reduction in cryptocurrency mining has contributed to the decline in demand for games,” she added.
While the chip giant's graphics processing units (GPUs) were designed for gaming purposes, strong demand for crypto mining business in recent years has contributed to a 320% increase of the company's share price over the past five years.
Kress however said that falling crypto prices and changes in the consensus mechanism have in the past impacted the demand for his products and the ability to estimate it:
“Cryptocurrency market volatility – such as declining cryptocurrency prices or changes in the method of transaction verification, including proof-of-work or proof-of-stake – has in the past had and may in the future impact demand for our products and our ability to accurately estimate it."
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