NVIDIA, one of the largest video card manufacturers, has been drawing attention with its growth figures in recent years. The use of graphics cards produced by the company, especially in cryptocurrency mining, also increased NVIDIA’s revenues significantly. The collapse in crypto seems to have had the opposite effect.
Falling cryptocurrency prices negatively affected NVIDIA
announced the preliminary results for the second quarter of 2022. With revenue of $6.7 billion, NVIDIA continued to grow compared to last year. However, it is seen in company reports that a revenue of 8.1 billion dollars is targeted for the same period. This reveals a revenue loss of $1.4 billion.
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NVIDIA attributes the loss of revenue to weaker-than-expected demand for its gaming products. NVIDIA; Evga points out that partners like MSI, Asus, Zotac, Gigabyte and others are selling less graphics cards than expected. This decrease in sales can be attributed to the depreciation of cryptocurrencies.
It is stated that crypto money miners bought less graphics cards during the collapse, and they also put their graphics cards on sale during this period. NVIDIA CEO Jensen Huang used the following statements about the decline in graphics cards:
In anticipation of continued macroeconomic conditions affecting sales, we took action with our gaming partners to adjust link prices and inventory.
That said, following the announcement, we could see further price drops for existing GeForce GPUs, whose prices have already dropped throughout the year. Some graphics cards have not yet returned to their first announced prices, but with the continuation of the decline in cryptocurrencies, the prices may be pulled back a little more.
In contrast, AMD increased its revenue from $1.3 billion last year to $1.7 billion this quarter, thanks to consoles such as Xbox Series S and X and PlayStation 5. Although Nvidia provides hardware for Nintendo Switch, company revenues are generally dependent on computer systems.
Nvidia’s next-generation RTX 4000 series graphics card is expected to be released this year. Due to the supply shortage and rising prices, the RTX 3000 could not reach the expected sales figures. Computer users who stay away from this graphics card may now be waiting for the new RTX 4000 series. This situation will positively affect NVIDIA’s sales in the coming period.
So what do you think about the cryptocurrency crash and NVIDIA-signed graphics cards? You can share your views with us in the comments section.