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Market crash cryptocurrencies also led to lower profits NVIDIAmanufacturer video cards used to mine the specified virtual currencies.
In the announcement of preliminary results for the second quarter of this year, NVIDIA It indicated that it had generated $6.7 billion, higher than in 2021 but less than the $8.1 billion projected for this cycle.
Cryptocurrency falls, profits fall
video cards, although aimed at PC gamers, they have found their boom during the pandemic because they can handle the networks crypto loads cryptocurrencies such as Ethereum, forcing users to create large “farms” to receive large rewards.
This caused a shortage of units in the market and miners were the only beneficiaries.
However, due to the sharp drop in the value of currencies, large mining systems became unprofitable, which forced them to auction their assets. video cards in the secondary market. It also led to partners NVIDIA sold less video cards new.
“As we expect macro conditions affecting direct sales to continue, we have taken steps with our game partners to adjust channel prices and inventory,” the CEO said. NVIDIA, Jensen Huang. This means that we may see a further drop in the prices of cards that have been declining in recent weeks.
The competition started to grow
Its direct competitor in the graphics card market, amdduring the quarter it improved from $1.7 billion thanks to the provision of special hardware for consoles such as the Xbox Series X | S and PS5.
A small overall increase in revenue from NVIDIAnote, this is almost entirely due to the company’s data center business, including machine learning applications. Presumably NVIDIA will release its next generation RTX 4000 series GPUs later this year.
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Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.