Nvidia’s Crypto Mining Chip Revenue Now ‘Nominal’ Following Months of Decline
A drop in crypto mining chip sales dragged down the chipmaker’s OEM business unit year-over-year.
May 25, 2022 at 9:45 p.m. UTCUpdated May 11, 2023 at 4:19 p.m. UTC
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Chip giant Nvidia (NVDA) said its contribution from sales of cryptocurrency mining processor (CMP) was “nominal” for its 2023 fiscal first quarter ended May 1, 2022, constituting a drag on year-over-year revenue for its OEM business unit.
- Nvidia’s said first-quarter revenue for its “OEM and Other” business unit fell 52% to $158 million from the same quarter last year due to a decline in its cryptocurrency mining processor sales, according to a filing.
- The chip maker didn’t disclose the specific amount of sales for its mining processor unit in the first quarter, but labeled it as “nominal” and down from $155 million a year ago.
- This comes after the sales of the CMP unit continued to decline with the price of cryptocurrencies in general. In Nvidia’s previous quarter, CMP revenue fell 77% from the previous quarter.
- Nvidia’s total first-quarter revenue was $8.29 billion, beating the consensus estimate of $8.12 billion, according to FactSet. Its “OEM and Other” unit contributed only about 2% of the first quarter revenue.
- Adjusted earnings per share of $1.36 beat consensus estimates of $1.30. However, Nvidia gave fiscal second-quarter sales guidance of $8.10 billion, which missed the consensus estimate of $8.399 billion.
- The shares of the chip maker were down about 7% in after-hours trading on Wednesday.
- On May 6, the U.S. Securities and Exchange Commission (SEC) said Nvidia failed to disclose that crypto mining was a significant contributor to its 2018 revenue and the company agreed to pay a $5.5 million fine to settle the charges.
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Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets