Graphics card giant Nvidia CFO Colette Kress revealed that the company was unable to predict how reduced crypto mining demand would affect its Q2 results, which fell far short of the analyst estimates.
Nvidia released its financial results for the three months ended July 31, which cites a 19% quarter-on-quarter drop in revenue to $6.5 billion while the net income fell 59% to $656 million. Gaming division revenue which includes sales of its high-end GPU also fell 44% from its previous quarter to $2.04 billion.
Nvidia describes the figures attributed to challenging market conditions. In July, Nvidia also saw a decline in the demand for crypto mining chips. Kress stated that Nvidia has limited visibility on how the crypto market affects the demand for its gaming products.
Nvidia’s GPUs are capable of crypto mining, however, it has limited visibility into how much this affects overall GPU demand. Consequently, the company was unable to accurately estimate the extent to which reduced mining contributed to the decline in Gaming demand.
Kress also emphasized that volatility in the crypto market and changes in consensus mechanisms have in the past impacted demand for its product. With the Ethereum merge transition scheduled to be completed between September 10 to September 20, demand for crypto mining hardware will drop further.
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