- Nvidia has reported a 19% drop in revenue and a 59% drop in net income.
- The company’s gaming sales were down 33% from the same time last year and 44% quarter-on-quarter.
- CFO Colette Kress says crypto market conditions could have affected this.
On Wednesday, Nvidia’s CFO, Colette Kress, said that the company was unable to quantify how much the drop in crypto mining demand affected the Q2 revenues. The quarterly report for the three months ending July 31 was made public, showing a 19% decline in revenue to $6.5 billion and a 59% decline in net income to $656 million.
Per the report, NVIDIA’s gaming sales were down 33% from the same time last year and 44% quarter-on-quarter. Kress explained that the lower sell-in of gaming products reflected decreased channel partner sales owing to macroeconomic headwinds, which was the primary reason for the decline in GeForce GPU sales.
Nvidia GeForce GPUs can and have been used for cryptocurrency mining, but the company claims to have “limited visibility” into how much this affects their overall GPU demand. “We are unable to accurately quantify the extent to which reduced cryptocurrency mining contributed to the decline in gaming demand,” Kress noted.
Despite the fact that the chip giant’s graphic processing units (GPUs) were originally developed for gaming, significant demand for crypto mining operations over the past couple of years has contributed to a 320% growth in Nvidia share price over the last five years.
However, Kress acknowledged that the cryptocurrency market’s economic position and moves toward newer and greener approaches to cryptocurrency mining, such as the switch to Proof of Stake, have previously impacted the company’s revenues and its ability to estimate them.
Volatility in the cryptocurrency market — such as declines in cryptocurrency prices or changes in methods of verifying transactions, including proof of work or proof of stake — has in the past impacted, and can in the future impact, demand for our products and our ability to accurately estimate it.
The share price of Nvidia has fallen 5.89% on the Nasdaq within the last five trading days.