Nvidia's CFO Colette Kress asserts that the company is unable to forecast how the decline in demand for cryptocurrency mining has influenced its Q2 profits, which were announced on Wednesday and fell short of analyst expectations.
The leading manufacturer of semiconductors in the world released its financial results for the three months ended July 31. Between quarters, revenue decreased by 19% to $6.5 billion, and net income fell by 59% to $656 million.
Nvidia blamed "difficult market conditions" for the gaming division's revenue decline of 44% from the prior quarter to $2.04 billion, which includes sales of its high-end GPUs. She continued, "We are unable to precisely measure the degree to which decreased bitcoin mining led to the reduction in Gaming demand."
Despite the fact that the chip giant's graphic processing units (GPUs) were made for gaming, recent growth in the popularity of cryptocurrency mining has helped to drive up the share price of the business by 320% over the past five years.
The network's planned transition to proof-of-stake consensus on September 15 may result in a further decline in the demand for bitcoin mining hardware. As a result, products used for cryptocurrency mining, like the $4,690 Nvidia CMP170 HX, may experience issues.
Despite this, networks like Bitcoin (BTC), Litecoin (LTC), Monero (XMR), and Dogecoin (DOGE) continue to use proof-of-work consensus mechanisms, and there are no evident intentions to move to alternative types of consensus in the foreseeable future.
On the Nasdaq, the share price of Nvidia has decreased 5.89% over the previous five days.
