Nvidia revenue declines as cryptocurrency mining demand falls

Nvidia Revenue Normalises As Cryptocurrency Mining Craze Subsides

Weekly chart for Nvidia share price.
Nvidia Share Price Weekly Chart, Source: Tradingview.com

Chip manufacturer Nvidia posted Q2 results on the 15th of August reporting a 16% increase in revenue quarter-on-quarter. Revenue grew from $2.2 billion in Q1 to $2.58 billion in Q2. However, the revenue has declined 16% from the $3.12 billion reported in Q2 2018. The CFO noted on the conference call that “Essentially our business is normalized” after an increase in demand for GPU chips last year from cryptocurrency miners. Sales of GPUs account for 81% of Nvidia’s revenue generation but the CEO noted that cryptocurrency miners are likely to make no contributions to the bottom line of the company in the months ahead. After posting disappointing results in November 2018, the share price of Nvidia dropped from a 2018 high of $292 to a 2018 low of $124. The share price currently trades at $159.56 and earnings per share for Q2 rose to $0.90 from $0.64 in Q1.

Source: The Next Web