Nvidia Underperforms in Q2 as Mining GPU Sales Predictions Fall Short

While Nvidia raised the bar by generating revenue of more than $6.5 billion, the sales target for cryptocurrency mining processors fell short for the second quarter.

Nvidia made the final results for the second quarter ended August 1 public. The main points of the report encompassed an increase of 15% from Q1 in revenue amounting to $6.51 billion, as well as earnings of $1.04 billion. Professional visualization equipment sales, gaming, and data center boosted these hefty digits considerably.

85% growth from 2020 and a total of $3.6 billion in revenue in the gaming division is attributed to the addition of GeForce RTX 3080 Ti and RTX 3070 Ti. $519 million and $2.37 billion in revenue were brought in by professional visualization products and the data center, respectively.

The estimations of Nvidia for the third quarter amount to a total of $6.80 billion in revenue.

The launch of the cryptocurrency mining processors happened in February and garnered $155 million for Q1. Nonetheless, the earnings call showed that the prediction for selling cryptocurrency mining processors of $400 million for the second quarter made by Colette Kress, Nvidia CFO was missed.

Sales hitting $266 million in CMP for the second quarter made Nvidia miss the target revenues for $134 million.

Between providing a supply for crypto miners and committed gamers, Nvidia decided to put a hashrate limiter to RTX 3060 GPUs, thus lowering unit mining capacity.

GeForce RTX 3080, RTX 3070, and RTX 3060 Ti GPUs were modified to include a reduced Ethereum (ETH) hashrate in May. The GPUs with the modification are recognizable by the label “Lite Gash Rate ” to limit the interest of crypto miners and make more GPUs available to gamers.

As such, the bolstering of sales will be attributed to the purchasing of gamers instead of miners from here on out. 

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