Nvidia’s chief financial officer said that falling cryptocurrency prices and changes in consensus mechanisms in the past have affected demand for its products and the company’s ability to predict it.

Colette Kress, chief financial officer of graphics card giant Nvidia, said the company did not expect Wednesday’s decline in cryptocurrency demand, which fell short of analysts’ expectations, to impact second-quarter results.

The chip giant announced its financial results for the three months ended July 31, showing net income fell 19% to $6.5 billion and net income fell 59% to $656 million, down 19% from last year. previous quarter.

Gaming segment revenue, which includes the sale of its high-end GPUs, fell 44% quarter-on-quarter to $2.04 billion, which Nvidia attributed to “tough market conditions.”

Kress, who is also a vice president of the company, said Nvidia has limited understanding of how the crypto market is affecting demand for its gaming products:

“Our GPUs can mine cryptocurrency, but we have limited understanding of how much this affects our overall GPU demand.”
“We cannot accurately measure the extent to which cryptocurrency mining has contributed to the decline in demand for games,” she added.

While the chip giant’s graphics processing units (GPUs) are dedicated to gaming, strong demand for cryptocurrency mining activities over the past few years has fueled the company’s share price by 320% over the past five years.

However, Kress said that falling cryptocurrency prices and changes in the consensus mechanism in the past have affected demand for his products and his ability to predict it:

“Volatility in the cryptocurrency market — such as falling cryptocurrency prices or changes in the way transactions are verified, including proof of work or proof of stake — has affected the demand and capabilities of our products in the past and may affect it in the future. To guess right.
With the Ethereum merger scheduled for September 15, the conversion of the consensus network to Proof-of-Stake could further reduce the demand for cryptocurrency mining hardware. This could create problems for Nvidia cryptocurrency mining products such as the CMP170 HX, which currently costs around $4,695.

Related: Nvidia to pay $5.5M in SEC lawsuit over ‘inadequate disclosure’ in cryptocurrency mining

However, cryptocurrencies such as Bitcoin
BTC

way down
$16,977

, Litecoin
LTC

way down
$78.71

, Monero
XMR

way down
$143

and dogecoin
doge

way down
$0.10

are among the networks currently working on Proof-of-Work consensus mechanisms that have no notable plans for a future transition.

Nvidia’s share price has also fallen 5.89% on the Nasdaq over the past five days.

Source: CoinTelegraph

LEAVE A REPLY