Nvidia fails to sell crypto Mining GPU on expectation
Nvidia company announced their earnings in the financial earning calls of Q2. Company generated huge revenue but they failed to achieve that target which they expected to generate revenue from crypto mining processor sales.
In the financial revenue calls of the second quarter of 2021, Nvidia revealed their earnings. company generated $6.51 billion which is target breaking. This earning of Q2 is around 15% more than Q1.
The company generated around $1.04 billion of revenue from the gaming, data center and professional visualization instruments item sales.
If we see over the last year growth then we will find that the company beated his own earnings record of gaming processors sales. They generated around $3.06 billion this year, which is 85% in comparison with the last year.
Now the company wants to generate revenue around $6.80 billion in the next third quarter of 2021.
Failure Of Company In Crypto Industry
Colette Kress, CFO of the Nvidia company, said that the company expected to generate a minimum $400 million revenue in Q2. But they failed and only made around $266 million in CMP sales in Q2 round.
The CMP line was introduced specially for the crypto mining processor unit in February Q1 and that generated around $155 million in the first quarter.
In the past the company saw a huge imbalance in supply of mining equipment to the gaming and crypto mining industry, so they specially introduced RTX 3060 series graphics for crypto mining business.
Probably the failure of Nvidia in selling the expected amount of processor units to the crypto industry because of the Mining ban law by China. And that leads to huge numbers of second hand mining equipment which were available for sale.
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