The firm's revenue was affected by a decrease in crypto mining as digital currency markets slumped earlier this year.
Nvidia forecasted its third quarter revenue between $3.19 billion and $3.32 billion, lower than the figure predicted by analysts of $3.34 billion.
The company reported that crypto mining sales were significantly lower than expected in Q2, adding that it does not expect to make significant blockchain-related sales for the rest of the year.
"Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million. Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward."
Total revenue rose 40 percent to $3.12 billion, according to Reuters.
Analysts polled by FactSet suggested that while the company's revenue from crypto mining hardware will decline, it will see significant growth in its gaming and servers sales.
Revenue from Nvidia's gaming sector is expected to grow by 47 percent to $1.75 billion on a year-on-year basis, while data-center revenue is expected to surge 78 percent to $740 million.
In June, analysts expressed concerns that the success of another GPU producer, Advanced Micro Devices Inc.'s, may not last long if crypto mining quiets down, or if miners choose GPUs by other manufacturers.
In earlier months, the company's share price had grown up to 30 percent due to a crypto mining boom.
"Cryptocurrency strength has to some degree offset the slow and steady progress establishing momentum in desktop and server microprocessors after several years away from those markets - but that higher revenue has driven higher operating expense, which further raises the bar for the processor business if crypto momentum should fade."
Nvidia Stock Falls as Q3 Revenue Estimates Hit by Crypto Mining Decline
Published on Aug 17, 2018
by Cointele | Published on Coinage
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