Nvidia’s Crypto Mining Chip Revenue Now ‘Nominal’ Following Months of Decline

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.