Nvidia Fails To Sell The Expected Amount Of Crypto-Mining GPUs

Nvidia exceeded expectations with more than $ 6.5 billion in revenue. However, the chip manufacturer was unable to offer its line of GPUs for cryptocurrency mining. Nvidia, the California-based tech giant recently announced the financial results for its second fiscal quarter that ended on the 1st of August, 20211. Key metrics include $ 6.51 billion in revenue, 15% Q1 growth, and $ 1,040 million in profit. Both of them are largely supported by gaming, professional visualization equipment sales, and data centers.

Now that the GeForce RTX 3080 Ti and RTX 3070 Ti were added by the firm, the gaming segment saw record growth with $ 3.06 billion in revenue. It also saw 85% year over year growth. Nvidia’s data center business generated $ 2.37 billion in revenue. Its professional visualization products earned a total of $519 million. Moreover, Nvidia announced that the company expects revenue of $6.80 billion in the third fiscal quarter.

However, according to the income statement, Nvidia fell short of expectations in one of the key areas. During the Q1 earnings call, the firm’s CFO Colette Kress predicted that the cryptocurrency mining processor (CMP) will have $400 million in revenue in Q2. Nvidia achieved $ 266 million in revenue from CMP in its fiscal second quarter, down a third from its target. The CMP series was introduced in February this year and grossed $155 million in the first quarter. Nvidia is having trouble balancing the supply between professional gamers and crypto miners for its high-end graphics devices.

More From Nvidia’s CFO

Nvidia also brought hash rate limiters to its RTX 3060 series graphics cards. It did that to limit the ability of the units to mine cryptocurrency. In late May, Nvidia said it was applying the reduced Ethereum hash rate to its recently produced GeForce RTX 3080, RTX 3070, and RTX 3060 Ti graphics cards. These new cards, designated “Lite Hash Rate”, are intended solely for the needs of gamers and not for cryptocurrency miners. Furthermore, Kress explains how Nvidia’s current efforts to limit the hash rate of gaming graphics cards are aimed at providing enough chips for gamers. She also emphasized the fact that the firm expects a “minimal contribution” from the cryptocurrency sales from now on.

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