The chief financial officer of GPU maker Nvidia said the company was unable to assess how declining demand for cryptocurrencies affected its fiscal second quarter results.
According to a recent report by Nvidia, the company’s revenue fell 19% to $6.5 billion quarter-on-quarter, while net income fell 59% to $656 million. At the same time, revenue from the company’s gaming division fell 44% to $2.04 billion. Nvidia stated that this is a consequence of difficult market conditions.
The company has long been accused of hiding just how big of an impact the crypto industry has on its revenue. However, Nvidia CFO Colette Kress said that Nvidia has limited understanding of how the cryptocurrency market affects demand for their gaming products.
“Our GPUs are capable of mining cryptocurrencies, although we have limited understanding of how much this affects our overall GPU demand. We cannot determine exactly to what extent the reduction in cryptocurrency mining contributed to the decrease in gaming demand,” she said.
According to Kress, the volatility in the cryptocurrency market has already affected the demand for their products. It is noteworthy that the high demand for cryptocurrencies over the past few years has contributed to a 320% increase in the value of the company’s shares, and over the past five days, the price of Nvidia shares fell almost 6%.
The company previously released a toolkit aimed at Metaverse developers. With it, developers will be able to make realistic animations and physics models.
Source: Bits
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
