Nvidia has announced its results for the second quarter of fiscal year 2020 and it seems that the graphics giant is still suffering the effects of the disappearance of cryptocurrencies, with a drop of 17% in its turnover. ; business.
A few years ago, the cryptocurrency craze was at its height, as people could earn a decent amount by using their graphics cards to “mine” cryptocurrencies like Bitcoin and Ethereum.
This has led to a surge in graphics card sales, with Nvidia (and in particular AMD) achieving spectacular results (despite stockouts).
The enormous popularity of cryptocurrency could not last forever, and when it became increasingly difficult to make money, sales of graphics cards plummeted.
This is a blow to Nvidia's revenue, and as its recent results show, the impact remains negative. However, while on paper these results don't look great, they beat analysts' expectations at $2.58 billion ($2.54 billion). This news has allowed Nvidia's share to increase by 7%.
strength in games
According to the results, Nvidia's gaming products remain its main revenue driver, generating €1,31 billion, up from €1 billion last quarter, and still accounting for more than 50% of Nvidia's total revenue.
While rising from last quarter, gaming revenue is down from €1.8 billion a year ago, again highlighting how the end of the craze for cryptocurrency is impacting Nvidia.
So if things go wrong, it looks like at least Nvidia has hit a milestone, again thanks to its gaming division.
"Our business is essentially standardized," said Colette Kress, Nvidia's chief financial officer. The rise in sales of Nvidia-powered gaming laptops, as well as the success of the Nintendo Switch console (which uses Nvidia graphics) and the announcement of the Switch Lite all point to a brighter future.
Although "back to normal" isn't the most exciting outcome, in these uncertain times, and with the possibility of a trade war between the US and China, this seems to be enough for Nvidia.
Via Reuters