Nvidia Shows Decline In Mining Chip Sales

Nvidia Shows Decline In Mining Chip Sales

Sales of Nvidia's line of cryptocurrency mining products are expected to fall to "very marginal" levels in the fourth quarter.

While digital currencies have skyrocketed in value over the course of the year, Nvidia hasn't made significant profits from its line of cryptocurrency mining processors (CMPs).

According to Nvidia's fiscal third quarter report, the company's CMP sales fell 60% sequentially in the last quarter, with product line sales expected to fall further in the fourth quarter.

In its quarterly financial report, Nvidia said CMP sales fell from $ 266 million in the second quarter to $ 105 million in the third quarter, which ended in October.

Nvidia claims that the product has generated revenues of $ 526 million over the lifetime of the product, roughly 3% of its $ 19,27 billion in revenue for the same period. The company's total revenue comes almost entirely from sales of gaming equipment, data centers, and professional imaging equipment.

Last quarter did not differ in revenue from CMP sales. According to Cointelegraph, Nvidia has surpassed Wall Street's expectations with more than $ 6,5 billion in revenue. However, it failed to reach the profitability target for its line of GPUs for crypto mining in the second quarter of 2021.

During the Q400 P&L report, Nvidia's CFO, Colette Kress, predicted that the lineup of cryptocurrency mining processors will total $ 266 million in QXNUMX. In the second quarter, Nvidia sold $ XNUMX million in CMPs, one-third less than its target.

While CMP isn't picking up steam yet, Nvidia's bottom line hasn't been hurt. Its value has increased by almost 123% this year. According to the company's earnings report released Wednesday, total sales were up 50% year-over-year, and $ 3,2 billion was generated in one quarter from sales of graphics cards to gamers and PC builders.

However, the company claims it cannot be sure that its surging graphics card sales are unrelated to the cryptocurrency market. During a phone call with analysts on Wednesday, Kress said: "Our GPUs are capable of mining cryptocurrency, although we do not know how much this affects our overall need for GPUs."