Our crypto business is dead and it’s never coming back — NVIDIA

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Nvidia shares fell 5.6% after hours, following a 0.6% decline to close the regular session at $257.44. "Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward".

The mining of cryptocurrency tokens, computer code that carries value in online transactions, had helped stoke demand for graphics chips.

Nvidia warned at the time that the demand would slow but it's fallen faster as crypto prices have collapsed.

The report also states that the company returned USA $837 million to shareholders through a combination of $655 million in share repurchases and $182 million in quarterly cash dividends in the first half of fiscal 2019. Suddenly that $190 million loss looks rather positive.

Nvidia's CFO commentary also revealed that the company's OEM and IP revenue was down 54 percent from a year ago to $116 million, "driven by lower demand for cryptocurrency mining".

Revenue from gaming, still by far Nvidia's largest business, grew 52 percent from a year ago, to $1.8 billion, a bit over analysts' forecasts. 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. However, analysts were expecting $3.34 billion (£2.62bn) for that period.

Huang is reshaping his company to take advantage of trends that are changing computing. Visit MarketWatch.com for more information on this news.

As reported by Market Watch, a FactSet poll suggests that the company will be able to offset any diminishing returns via the increased use of its hardware in gaming devices and in data centers.

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In January this year, the price of Nvidia's latest flagship card, the GeForce GTX 1080Ti, went up from a suggested price of $700 to nearly $1300.

Several research analysts have issued reports on the company.

Excluding items, Nvidia earned $1.94 per share. Huang said that represents primarily a build-up of cheaper chips that will get sold in computers being manufactured now for the "back-to-school" shopping season.

Nvidia also stated that they were not expecting any sales related to the mining sector for the rest of this year.

Despite the crypto downturn NVIDIA is doing alright with recent revenue growth from its gaming business and the launch of its new Turing architecture to attract video producers.

Both revenue and profit easily beat Wall Street estimates.

Gaming, Nvidia's largest business, was the second-fastest growing unit in Q2, with a 52 percent increase to $1.8 billion from the same period past year.

With the quarter's results, Nvidia revenue is on course to more than double from 2016.

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