NVIDIA Reveals Crypto-Related Sales in Q1 Earnings Report

NVIDIA Reveals Crypto-Related Sales in Q1 Earnings Report

Nvidia is feeling the slowdown in cryptocurrency market and a general slowdown in consumer shopping, so revenue from gaming department is actually 1 percent lower compared to the last quarter, but still up by 68 percent compared to the same quarter previous year.

According to the company's report, the $289 million figure represents about 9 percent of its overall $3.2 billion revenue.

Nvidia announced earlier this week that its supply shortage had eased and GeForce GTX 10-Series GPUs were back in stock at MSRP.

During an earnings call on Thursday, CEO Jensen Huang, boasted that there was "growth across every platform", and that the "datacenter business achieved another record and gaming remained strong".

Chief Financial Officer Colette Kress said that Nvidia expects earnings from cryptocurrency-related sales to drop 65 per cent in the next quarter, down to roughly $100 million.

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Nvidia is coming off a record quarter in which revenue shot up 66 percent year-over-year to $3.21 billion. Retail prices for Nvidia's gaming chips surged earlier this year as miners snapped up chips, a development Nvidia addressed by releasing mining-specific chips. "I think that a lot of gamers weren't able to buy into the new GeForce as a result".

Revenue from Nvidia's best-known business of gaming chips rose 68 percent to $1.72 billion, beating analysts' average estimate of $1.65 billion. The company expects crypto revenue to fall by two-thirds during the current quarter.

Investors shouldn't obsess about the crypto business, Rosenblatt Securities analyst Hans Mosesmann said. Nvidia has recently unveiled the new Tesla V100 with 32GB of memory, NVSwitch GPU interconnect fabric and Nvidia DGX-2, TesnorRT 4, and support for Kubernetes acceleration, all of which will further drive Nvidia's datacenter revenue in future financial reports. Nvidia managed to secure a deal with several key vehicle manufacturers, and its DRIVE Pegasus AI computing platform with Xavier SoC will probably get the company some future wins. That raises concerns with investors that Nvidia's $1.723 billion in gaming sales may suffer from the cryptocurrency downturn as well.

Analysts on average had expected revenue of $2.91 billion, according to Thomson Reuters.

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