Crypto crash: Despite a strong quarter, Nvidia shares fall on disappointing forecast

Crypto crash: Despite a strong quarter, Nvidia shares fall on disappointing forecast

Crypto crash: Despite a strong quarter, Nvidia shares fall on disappointing forecast

Nvidia's CFO Colette Kress said that the company had previously anticipated cryptocurrency to be meaningful for the year, but is now projecting no contributions going forward. Both areas topped analysts' estimates. Non-GAAP earnings were $1.94 per share on revenue of $3.12 billion, up 40 percent year-over-year.

In January this year, the price of Nvidia's latest flagship card, the GeForce GTX 1080Ti, went up from a suggested price of $700 to nearly $1300.

Nvidia had a profit of $1.1-billion, or $1.76/share, in the second quarter, compared to $583-million, or $0.92, in the same period a year earlier.

The reported gross margin is at 63.3 percent, up by 490bps compared to the past year and also down by 120bps compared to the previous quarter.

The diluted earning per share for this quarter were at $1.17, up by 91 percent compared to the a year ago and down 11 percent compared to the previous quarter. The company is expected to announce a Turing-based GPU for gaming at next week's Gamescom event.

"Growth across every platform - AI, Gaming, Professional Visualisation, self-driving cars - drove another great quarter", Jensen Huang, Nvidia's chief executive, said in a press release. "Developers are jumping on the GPU-accelerated computing model that we pioneered for the boost they need". Trip Chowdhry of Global Equities Research said in a note to clients that the "secular growth trends" in data centers remains, and it's "not stopping anytime soon".

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Nvidia's gaming division, which makes up almost 60 per cent of total group sales, saw revenue rise 52 per cent from a year ago, while the company's fastest pace of growth came from its data centre unit, where revenue was up 83 per cent.

Automotive remained marginal, with revenue up only 13 percent, to $161 million.

With total revenues standing at $3.12 billion for the three months, cryptocurrency-specific products declined to approximately $100 million with the downward spiral set to continue through the next couple of quarters.

So that really is curtains for crypto, at least for the likes of Nvidia and AMD's sales surge. Gaming accounted for 72% of the company's revenue for the quarter, generating $1.81B, up 52% year-over-year.

During the earnings call, Huang named transportation as one vertical that has a lot of potential for future growth for data center.

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