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Nvidia’s Q3 Results Reveal a Dip in Cryptocurrency Mining Chip Sales

Even though the value of cryptocurrencies has soared this year, Nvidia is still yet to generate a profit from its cryptocurrency mining processor (CMP) lineup. As per Nvidia’s third fiscal quarter earnings release, the company’s CMP sales fell 60% sequentially in the recent quarter, with the product line’s sales likely to decline even more in the fourth quarter.

Nvidia stated in its quarterly financial report that CMP sales decreased from $266 million in the second quarter to $105 million in the third quarter, which concluded in October. Nvidia reports that the product generated $526 million in sales throughout its lifetime, or around 3% of the company’s total revenue of $19.27 billion over the same period.

The company’s total revenue has been nearly exclusively driven by sales of gaming, data centre, and professional visualization equipment. The previous quarter was no exception in regards to CMP sales revenue. Nvidia exceeded Wall Street projections by earning more than $6.5 billion. Nonetheless, it fell short of meeting its second-quarter 2021 profitability objective for its crypto-mining GPU line.

Colette Kress, Nvidia’s chief financial officer, forecast a $400 million revenue for the firm’s crypto mining processor series in Q2 during the company’s first-quarter results call. Nvidia sold $266 million worth of CMPs in the second quarter, falling short of its objective by a third.

While CMP has yet to acquire considerable momentum, it has had no adverse effect on Nvidia’s earnings. Its value has increased by over 123 percent this year. Overall revenues increased 50% year over year, and the firm made $3.2 billion in a single quarter from the sale of graphics cards to gamers and PC builders, according to the company’s results statement on Wednesday.

Nonetheless, the company asserts that it cannot be confident that its increased graphics card sales are unrelated to the cryptocurrency sector. On Wednesday, during a conference call with investors, Kress said, “Our GPUs are capable of crypto mining, albeit we do not have insight into the effect on our total GPU demand.”

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