Nvidia Crypto Mining Chips Revenue Declines by -77%

Nvidia released its financial report for Q4 and fiscal 2022. In the gaming sector, the fourth quarter revenue reached $34.2 billion, up +37% when compared to the previous year. When compared to the previous quarter there has been a +6% increase. The fiscal year revenue climbed by +61% to $12.46 billion.

In the
 
 data center 
segment Nvidia posted strong gains. Q4 revenue rose +71% to $3.26 billion when compared to the previous year and +11% compared to the previous quarter. Fiscal year revenue increased by +58% to $10.61 billion.

In professional visualization, Nvidia’s revenue saw a sharp increase to $643 million (+109%) compared to the previous year and +11% compared to the previous quarter. The fiscal year revenue doubled (+100%) to $2.11 billion.

On 8 February Nvidia and SoftBank terminated a $40 billion deal on Arm Ltd. from SoftBank Group. Due to regulatory difficulties the agreement has been terminated.

Nvidia Outlook Q1 2023

Nvidia included their outlook for the first quarter of fiscal 2023:

  • Revenue is expected to be $8.10 billion, plus or minus 2 percent.
  • GAAP and non-GAAP gross margins are expected to be 65.2 percent and 67.0 percent, respectively, plus or minus 50 basis points.
  • GAAP operating expenses are expected to be $3.55 billion, including the Arm Write-off of $1.36 billion.
  • Non-GAAP operating expenses are expected to be $1.60 billion.
  • GAAP and non-GAAP other income and expense are both expected to be an expense of approximately $55 million, excluding gains and losses from non-affiliated investments.
  • GAAP and non-GAAP tax rates are expected to be 11 percent and 13 percent, respectively, plus or minus 1 percent, excluding any discrete items.

Source: Nvidia

Down -77% on Crypto Mining Processors

Nvidia crypto mining processors’ revenue dived from $105 million to $24 million. In May 2021 Nvidia announced that all its GPUs have software installed that prevents them from being utilized for
 
 crypto mining 
(a hash rate reduction).

Instead, Nvidia offered cryptocurrency miners dedicated mining processors.

Some, are suggesting as the market are leaning more towards Proof of Stake as opposed to Proof of Work, the demand for such processors is declining. Minting Non-Fungible Tokens (NFTs) however may require the processors.

Intel is also entering the cryptocurrency mining sector with its new chip. Intel claims the mining chip is 1,000 times faster than the standard chips for SHA-256 in today’s market. The new chip will be introduced at the International Solid State Circuit Conference (ISSCC) in February.

Nvidia released its financial report for Q4 and fiscal 2022. In the gaming sector, the fourth quarter revenue reached $34.2 billion, up +37% when compared to the previous year. When compared to the previous quarter there has been a +6% increase. The fiscal year revenue climbed by +61% to $12.46 billion.

In the
 
 data center 
segment Nvidia posted strong gains. Q4 revenue rose +71% to $3.26 billion when compared to the previous year and +11% compared to the previous quarter. Fiscal year revenue increased by +58% to $10.61 billion.

In professional visualization, Nvidia’s revenue saw a sharp increase to $643 million (+109%) compared to the previous year and +11% compared to the previous quarter. The fiscal year revenue doubled (+100%) to $2.11 billion.

On 8 February Nvidia and SoftBank terminated a $40 billion deal on Arm Ltd. from SoftBank Group. Due to regulatory difficulties the agreement has been terminated.

Nvidia Outlook Q1 2023

Nvidia included their outlook for the first quarter of fiscal 2023:

  • Revenue is expected to be $8.10 billion, plus or minus 2 percent.
  • GAAP and non-GAAP gross margins are expected to be 65.2 percent and 67.0 percent, respectively, plus or minus 50 basis points.
  • GAAP operating expenses are expected to be $3.55 billion, including the Arm Write-off of $1.36 billion.
  • Non-GAAP operating expenses are expected to be $1.60 billion.
  • GAAP and non-GAAP other income and expense are both expected to be an expense of approximately $55 million, excluding gains and losses from non-affiliated investments.
  • GAAP and non-GAAP tax rates are expected to be 11 percent and 13 percent, respectively, plus or minus 1 percent, excluding any discrete items.

Source: Nvidia

Down -77% on Crypto Mining Processors

Nvidia crypto mining processors’ revenue dived from $105 million to $24 million. In May 2021 Nvidia announced that all its GPUs have software installed that prevents them from being utilized for
 
 crypto mining 
(a hash rate reduction).

Instead, Nvidia offered cryptocurrency miners dedicated mining processors.

Some, are suggesting as the market are leaning more towards Proof of Stake as opposed to Proof of Work, the demand for such processors is declining. Minting Non-Fungible Tokens (NFTs) however may require the processors.

Intel is also entering the cryptocurrency mining sector with its new chip. Intel claims the mining chip is 1,000 times faster than the standard chips for SHA-256 in today’s market. The new chip will be introduced at the International Solid State Circuit Conference (ISSCC) in February.

Source: https://www.financemagnates.com/fintech/nvidia-financial-report-released-strong-results-77-in-crypto-mining-chips-revenue/