NVIDIA could not assess the impact of mining on the company’s revenue

According to the Q2 2022 report, revenue for the company’s gaming division is down by 44%

25.08.2022 - 07:30

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2 min

What’s new? US graphics processor maker NVIDIA has released its financial results for Q2 2022. According to CFO Colette Kress, NVIDIA was unable to assess whether the decline in the digital asset market and demand for cryptocurrency mining had affected the company’s revenue and earnings. Cointelegraph writes about this.

News on the Cointelegraph website

What other data has been released? NVIDIA’s financial results for Q2 showed a 19% drop in revenue (compared to Q1) to $6,5 billion. Net income fell 59% to $656 million. Revenue for its gaming division, which includes the sale of graphics processors, has fallen by 44% to $2,04 billion, which the company explained to the “challenging market conditions.”

Colette Kress mentioned that NVIDIA GPUs are capable of mining cryptocurrency, but she could not determine exactly how much of the reduction in mining contributed to the decline in demand for devices and the drop in revenue for the gaming division. She added that in the past, volatility in the crypto market or changes in transaction verification methods have impacted demand and the ability to accurately estimate demand for NVIDIA products. In this regard, Kress admitted that similar things could happen in the future.

NVIDIA’s stock price on the NASDAQ has dropped by 5,89% over the past five days. At the time of writing (August 25, 07:10 UTC), the price per share is $172,22.

In May, the US Securities and Exchange Commission (SEC) accused NVIDIA of hiding information from investors about the role of mining in the revenue structure. The regulator noted that the company violated the Securities Act of 1933 and the disclosure provision of the Securities Exchange Act of 1934. Without admitting or denying the SEC’s findings, NVIDIA agreed to pay a $5,5 million fine as part of the claims settlement.

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