Chipmaker Nvidia’s Crypto Mining Chip Revenue Continues to Fall

Chip giant Nvidia (NVDA) said its cryptocurrency mining processor (CMP) sales were once again “nominal” for its 2023 fiscal second quarter ended July 31, down from $266 million a year ago. The chipmaker used the same term to describe its CMP sales in the previous quarter, dragging down revenues for its “OEM and Other” business unit.

Nvidia’s said overall second-quarter revenue for the business unit fell 66% to $140 million from the same quarter last year driven by lower notebook OEM sales, according to its chief financial officer’s commentary. The “OEM and Other” unit contributed only about 2% of total second-quarter revenue.

Sales of the CMP unit continued to decline with the price of cryptocurrencies in general. In Nvidia’s fiscal fourth quarter, CMP revenue fell 77% from the previous quarter.

Nvidia’s total second-quarter revenue was $6.7 billion, in line with the consensus estimate of $6.7 billion, according to FactSet. In early August, Nvidia pre-announced lower-than-expected results, saying it expected revenue to come in at $6.7 billion, well short of its previous guidance of $8.1 billion, primarily owing to lower gaming revenue.

Adjusted earnings per share of 51 cents beat consensus estimates of 50 cents. Nvidia also gave fiscal third-quarter sales guidance of $5.90 billion, plus or minus 2%, well short of the consensus estimate of $6.9 billion.

Shares of the chip maker were down about 2.8% to $167.38 in after-hours trading on Wednesday.

Read more: Nvidia Failed to Disclose Crypto Mining Revenue Impact in 2018, SEC Says