Nvidia guidance shows the demand for crypto mining hardware sinks

Andrew Cummings
August 19, 2018

Nvidia's CFO Colette Kress said that the company had previously anticipated cryptocurrency to be meaningful for the year, but is now projecting no contributions going forward.

According to details from the financial report, Nvidia hit revenues of $3.123 billion, up by 40 percent compared to the same quarter past year, but down by three percent compared to the last quarter.

Nvidia's market cap exceeds $158 billion, and its shares closed Tuesday up $5.31 at $261.43. Nvidia's GeForce 1080 could fetch more than $800 in January.

Excluding contributions from cryptocurrency products, the firm reported that it expects to post $3.25 billion (£2.5bn) in revenue in the fiscal third quarter, give or take 2 per cent.

The company reported better-than-expected earnings results at $1.76 (£1.38) per share versus the $1.66 (£1.30) per share expected by analysts, and by division, things weren't too bad either.

However, when the company's report was published on Thursday, Nvidia's stock value fell by six percent. But more immediately, revenue from cryptocurrency mining systems, which had been $289 million in the first quarter, dropped even more than expected, and likely will have "negligible" revenue impact from now on.

"Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million", Kress says (via Seeking Alpha).

While Nvidia chief and founder Jensen Huang (pictured) admits that cryptocurrency has been a big driver for the company in recent years, that time is coming to an end.

Nvidia had a profit of $1.1-billion, or $1.76/share, in the second quarter, compared to $583-million, or $0.92, in the same period a year earlier. "Developers are jumping on the GPU-accelerated computing model that we pioneered for the boost they need". Professional Visualization revenue reached $281 million, up 20% year-on-year and up 12% sequentially. Meanwhile, datacenter revenue grew 83 percent year over year $760 million.

So that really is curtains for crypto, at least for the likes of Nvidia and AMD's sales surge. Nine analysts have rated the stock with a hold rating, twenty-eight have given a buy rating and one has issued a strong buy rating to the company's stock. Turing, as it's called, will also make its way into gamer and data centre chips.

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