As a result of the second quarter of fiscal 2023, Nvidia’s revenue fell by 19% relative to the previous reporting period, to $6.5 billion. The company said it has only ‘limited information’ about the mining industry’s impact on its business.
The graphics processor maker’s results did not meet consensus forecasts, with analysts who expected to see revenue of about $6.9 billion. Net income fell 59% to $656 million.
Revenue in the gaming segment fell from $3.6 billion to $2.04 billion. Chief Financial Officer Colette Kress explained the dynamics by ‘difficult market conditions’.
“We do not have a very good understanding of how much [cryptocurrency mining] affects overall demand for devices and how the miners’ reduced demand has affected the revenue decline of the segment,” she added.
Kress noted that in the past, cryptocurrency market volatility and users switching between different distributed networks have affected demand for Nvidia products.
“Changes in transaction validation methods, including Proof-of-Work or Proof-of-Stake, have historically affected—and will continue to affect—demand for products and the ability to assess the consequences accurately,” she said.
In 2022, the U.S. Securities and Exchange Commission fined Nvidia for misrepresenting the impact of mining on the company’s business.
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