Nvidia Reports Huge Decline In GPU Sales for Cryptocurrency Mining

Nvidia Reports Huge Decline In GPU Sales for Cryptocurrency Mining

"We now expect a negligible contribution going forward", Kress added.

Nvidia's shares saw a sharp drop of about 5% after the market closed yesterday as the company's revenue took a beating over reduced demand for cryptocurrency mining.

In finance, revenue guidance refers to a publicly traded corporation's official prediction of its own near-future profit or loss, stated as an amount of money per share.

Shares of Nvidia were down more than five percent in after market trading. Nvidia CEO Jensen Huang explained the attraction of Turing with characteristic bluster, "Turing is the world's first ray-tracing GPU and completes the NVIDIA RTX platform, realizing a 40-year dream of the computer graphics industry". Investors have been attracted to the stock, pushing shares up 33 percent this year compared with a 6.4 percent advance by the Philadelphia Stock Exchange Semiconductor Index. Turing, as it's called, will also make its way into gamer- and data-center chips.

Still, Nvidia reported that sales from gaming rose 52 percent to $1.8 billion in the quarter ended July 29.

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Analysts had braced for lower gaming chip sales because Nvidia is widely expected to unveil a new generation of gaming chips ahead of the holiday shopping seasons, possibly as soon as next week. The prospect of the new design coming later this year may be causing some to hold off on purchases of its predecessor.

Rivals Intel Corp (INTC.O) and AMD have also been buoyed by the surge in demand from data centers, a rapidly expanding market powered by the explosive growth in mobile and Web apps.

Revenue in the fiscal third quarter will be $3.25 billion, plus or minus 2 percent, the Santa Clara, California-based company said Thursday in a statement.

In the third quarter, Nvidia is expecting revenues of $3.25 billion (+/- 2%), or another record quarter, with an expected gross margin of 62.6 percent (+/- 0.5%).

Over the quarter net income rose 89 per cent to $1.1 billion, with gaming revenue jumping 52 per cent from a year ago, reaching $1.8 billion.

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