Trading Concept
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Trading Concept
No Result
View All Result
Home Trading News

Nvidia crypto mining chip sales fell off a cliff this quarter

by
November 18, 2021
in Trading News
0
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

Cathie Wood says rising rates hit her strategy like an earthquake and cyclical stocks are next

Potentially deadly fungus is spreading at an ‘alarming rate,’ CDC says

Jen-Hsun Huang, president and chief executive officer of Nvidia Corp., speaks during the company’s event at Mobile World Congress Americas in Los Angeles, California, U.S., on Monday, Oct. 21, 2019.

Patrick T. Fallon | Bloomberg | Getty Images

Even as prices for digital currencies have soared throughout 2021, Nvidia has not cashed in on making the digital “shovels” for miners.

The kind of processors that Nvidia makes, GPUs, can be used to efficiently mine ethereum by solving complicated math problems. In March, the company introduced versions of its chips specifically targeted at cryptocurrency pros called CMP.

Nvidia said on Wednesday that CMP sales declined 60% sequentially in the most recent quarter, and that sales of the product line are expected to decline to “very negligible” in the fourth quarter.

Sales of Nvidia CMP cards declined from $266 million in the quarter ending in August to $105 million in the most recent quarter, ending in October.

Adding in $155 million in CMP sales from the May quarter, the chipmaker now says it has totaled $526 million in revenue during the product’s lifetime — under 3% of the $19.27 billion in revenue the company made during that period.

The lack of traction for CMP hasn’t hurt Nvidia at all. Its stock is up over 123% year-to-date. It said on Wednesday in an earnings report that overall sales were up 50% on an annual basis and that it made $3.2 billion in one quarter selling graphics cards to gamers and PC manufacturers.

In 2018, a drop in cryptocurrency prices hurt Nvidia’s stock and sales as used graphics cards hit the used equipment market, depressing prices.

2021 is different. This year, Nvidia’s latest generation GPUs for gamers have been hard to find at retailers because they sell out so quickly, and the company warned on Wednesday that it saw “overwhelming demand” in the holiday quarter.

When Nvidia announced CMP cards in the spring, they were explicitly framed as a tool to keep GPU supply available for gamers, instead of industrial miners.

“What we hope is that the CMPs will satisfy the miners and will stay in the professional mines,” Nvidia CEO Jensen Huang said in May, adding that the product line “protects” supply for gamers.

Nvidia sees gamers as a core market, and also believes that GPUs will become standard components of every cloud server. The bull case for Nvidia doesn’t necessarily need it to become the Levi’s of the cryptocurrency gold rush — it could become a key supplier for companies who want to create a “omniverse” or online world with 3D graphics, Huang said on Wednesday.

Nvidia also added software to its gaming-centric cards to make them less well-suited for mining cryptocurrency. The company said on Wednesday that nearly all the GeForce graphics cards it sells for desktops have the software, called Lite Hash Rate, turned on, in an “effort to direct GeForce to gamers.”

Still, the company says it cannot be sure that its surging sales of graphics cards isn’t related to the cryptocurrency world.

“Our GPUs are capable of crypto mining, though we don’t have visibility into how much this impacts our overall GPU demand,” Nvidia CFO Colette Kress said on a call with analysts on Wednesday.

ShareTweetPin

Related Posts

Cathie Wood says rising rates hit her strategy like an earthquake and cyclical stocks are next

by
March 21, 2023
0

Ark Invest's Cathie Wood said rapid interest rate hikes over the past year are now starting to hit cyclical pockets...

Potentially deadly fungus is spreading at an ‘alarming rate,’ CDC says

by
March 21, 2023
0

Candida auris is a yeast responsible for many infections. Resistant to most anti-fungal drugs, this fungus causes several deaths worldwide....

Bitcoin, ether build on recent gains as investors await Fed rate hike decision

by
March 21, 2023
0

Pedestrians walk past an advertisement displaying a Bitcoin cryptocurrency token on February 15, 2022 in Hong Kong, China. Anthony Kwan...

Home sales spike 14.5% in February as the median price drops for the first time in over a decade

by
March 21, 2023
0

Sales of previously owned homes rose 14.5% in February compared with January, according to a seasonally adjusted count by the...

GameStop stock soars after retailer posts first quarterly profit in two years

by
March 21, 2023
0

In this article GME Follow your favorite stocksCREATE FREE ACCOUNT A GameStop store operates in a strip mall on March...

Next Post

Morningstar picks property stocks that could win as China tries to 'clean up the space'

Why Lael Brainard is best qualified to lead the Fed

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • WHO says Covid vaccine booster programs will prolong pandemic

    0 shares
    Share 0 Tweet 0
  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • Spin or Split? AT&T Has a Big Decision to Make on Discovery Stake.

    0 shares
    Share 0 Tweet 0
  • Here’s how Carl Icahn is positioning for a possible recession in America

    0 shares
    Share 0 Tweet 0
  • Some lawmakers and their families are betting thousands of dollars on crypto

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by tradingconcept.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.tradingconcept.net