When NVIDIA decided to bank big on dedicated crypto mining hardware, investors remained hesitant. Several m nths later, that hesitation appears justified, as Q3 sales were abysmal. Even though crypto mining efforts are not slowing down, a reversal seems out of the question.
NVIDIA Crypto Mining Sales Plummet
- NVIDIA took a chance by creating a dedicated line of crypto mining hardware.
- At the time, the manufacturer hoped to alleviate the frenzied buying of gaming-oriented GPUs by crypto mining enthusiasts.
- It appears that effort may not yield the expected results, at least in Q3 2021.
- A corporate fiscal quarter report confirms a 60% decline in crypto mining hardware.
- Q4 2021 will not offer any improvement and will likely yield an even steeper drop-off.
- The sale decline from $266 million to $105 million indicates interest in these products wanes.
- However, the crypto mining hardware has – allegedly – brought in $526 million in revenue for NVIDIA.
- That is only 3% of the total revenue for the company, but still more than a footnote.
- The majority of NVIDIA’s income originates from gaming, data center, and professional visualization equipment.
- Moreover, the company falls well short of its predicted $400 million in revenue during Q2, as only $266 million came in.
- The upside is how these low numbers do not hinder NVIDIA’s profit in any way.
- Sales are still up YoY, and company valuation rose by over 120%.
- However, that doesn’t mean NVIDIA will keep pursuing crypto mining hardware opportunities.
- Additionally, traditional¬ NVIDIA GPUs are more than capable of mining crypto and may remain the go-to option for many miners globally.
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