Despite the fact that the value of digital currencies has soared this year, Nvidia’s cryptocurrency mining processor (CMP) line has failed to generate substantial revenues.
Nvidia‘s CMP sales decreased by 60% sequentially in the third fiscal quarter, according to the company’s third fiscal quarter report. The product line’s sales are likely to decline even further in the fourth quarter.
CMP sales dropped from $266 million in the second quarter to $105 million in the third quarter. Which ended in October, according to Nvidia’s quarterly financial statement.
Nvidia claims to have produced $526 million in sales throughout the product’s lifetime. Or around 3% of the company’s total revenue of $19.27 billion. Gaming, data centre, and professional visualisation equipment sales account for nearly all of the company’s overall revenue.
Nvidia missed its Q2
In terms of CMP sales revenue, last quarter was no different. Nvidia, as previously reported, outperformed Wall Street with a profit of almost $6.5 billion. Despite this, it missed its second-quarter 2021 profitability target for the crypto-mining GPU line.
Nvidia CFO Colette Kress estimated $400 million in sales for the company’s cryptocurrency mining processor line in the second quarter during the company’s first-quarter results call. Nvidia sold $266 million worth of CMPs in the second quarter, falling one-third short of its target.
Nvidia’s earnings have not been impacted by CMP, which has yet to acquire substantial traction. This year, it has increased in value by about 123%. According to the company’s financial report released on Wednesday, overall revenues were up 50% year over year. With $3.2 billion produced in a single quarter by selling graphics cards to gamers and PC builders.
Despite this, the company states it cannot be assured that the rise in graphics card sales is unrelated to the bitcoin industry. “Our GPUs are capable of crypto mining. Albeit we don’t have visibility into how much this affects our total GPU demand”, Kress said on a call with investors on Wednesday.