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Crypto related revenue for major chipmaker Nvidia reached $5.93 billion in third quarter revenue. The figure was higher than expected, despite a drop in demand from both crypto miners and gamers.
According to the company’s latest earnings report goodNvidia’s total revenue for the third quarter was $5.93 billion, down 17% year-over-year and down 12% compared to the previous quarter.
Adjusted earnings per share came in at 58 cents.
Ahead of Wednesday’s release, most analysts Be expected Nvidia was expected to post adjusted earnings of 71 cents per share, while revenue was expected to fall 18% year-over-year to $5.77 billion.
The expected decrease in revenue was seen by many as partly related to a decrease in demand for mining equipment. Ethereumswitch to proof-of-stake (POS), and partly because of the decrease in crypto prices this year.
“We believe that the recent transition in verifying Ethereum cryptocurrency transactions from proof-of-work to proof-of-stake has reduced the utility of GPUs for cryptocurrency mining,” the company said.
Ethereum miners have traditionally used consumer-grade GPUs that are also used by gamers, often manufactured by Nvidia. it is different from Bitcoin Miners, which typically use more specialized mining hardware known as ASICs.
Gaming demand also down
In addition to lower demand from crypto miners, demand from gamers also fell – a key consumer group for Nvidia – with the company citing macroeconomic headwinds as the main reason.
As of the earnings report, gaming-related revenue fell 51% to $1.57 billion, while product inventory for the company reached a record high.
“We delivered record data center and automotive revenue, while our gaming and pro visualization platforms declined as we work through channel inventory reform and challenging external conditions,” Nvidia Chief Financial Officer Colette Kress commented in the earnings release. Call,
He added that sales for gaming products were “relatively solid” in the Americas and the EMEA (Europe, Middle East, Africa) region, but “softened as macroeconomic conditions in Asia Pac and the COVID lockdown in China affected consumer sentiment.” The weight of demand continued.”
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