Nvidia has seen a drop in revenue and has given a disproportionate share of its revenue to cryptocurrency mining

Nvidia has just published its quarterly results, which show a big drop in the revenue of the graphics hardware designer, especially in the video game sector. However, this sector includes cryptocurrency mining, an activity whose impact can be difficult to quantify, according to the company.


Nvidia is going through an uncertain time

Nvidiathe graphic hardware design giant, announced a big drop in income to publish its quarterly results for the current year.

At the same time, Nvidia’s revenue of video game industry (mostly GeForce cards) fell 33% year-over-year to $2.04 billion. In the current year, it represents a reduction in the environment 44% compared to the previous quarter.

ACCORDING Colette Kressthe company’s chief financial officer, a difficult to determine part of this decline is related to cryptocurrency mining :

“As we noted last quarter, we expect cryptocurrency mining to contribute less and less to gaming demand; we are unable to quantify precisely the extent to which the decline in cryptocurrency mining has contributed to the decline in demand for games. »

He added that although the company expects a decrease in revenues, mainly due to Russian-Ukrainian conflict or Covid-19the effect of these events would have been stronger than expected “.

The CEO of chameleon brand, jensen huangfor his part spoke of an uncertain economic context, while expressing his confidence in the future of the company:

“We are navigating our supply chain transition in a challenging macroeconomic environment and we will get through it. »

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Nvidia is targeting the metaverse

Despite a 4% reduction in its activities related to design and professional visualization last quarter compared to last year, Nvidia drove the point home and wanted continue its progress in the metaverse.

Jensen Huang announced that ” achievements in artificial intelligence (AI) and the metaverse “, which he described as ” tomorrow internet “. More details are expected when GTC conference which will take place from September 19 to 22.

Nvidia has partnered specifically with Siemens to create an “industrial metaverse” to prevent possible logistical problems in simulating production line. In line with this project, the company is working on a solution to allow developers to easily create avatars in the metaverse.

However, Nvidia expects the decline in revenues continues in this sector at least until the third quarter, as original equipment manufacturers are said to be scaling back production.

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Source: Nvidia

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