Nvidia released a report of its third-quarter earnings on its media website. This is a report that dates to October 2018, and it shows that in the Q3, significant revenue has not been generated. The GPU manufacturer attributes this change in earnings to the growing disinterest of miners in the crypto industry.
Nvidia Revenue Increases by 21% from 2017, Rises 2% in Q3 of 2018
Nvidia generated revenue of $3.18 billion as at the third quarter of 2018. The company noted that this is a 21 percent increment from the $2.64 billion that was generated a year ago. In the same vein, it is only a 2 percent increment from the $3.12 billion that was raised in the second quarter of 2018.
A closer look at this income report shows that there has been a steady rise in comparison to last year. But, it has not been the case in the last few months. The same can be said about its Non-GAAP (Generally Accepted Accounting Principles ) earnings per diluted share. The Non-GAAP has been up 38 percent from last year, but down at 5 percent from the second quarter of 2018.
Based on the report, the turn out of events can be attributed to the decline in GPU hardware that was purchased. According to Nvidia, the bear market did not discourage crypto enthusiasts from mining, but it looks like later on, it did. The market which generated most of its revenue at the moment was those targeted at gaming devices.
Nvidia Claims Revenue is as a Result of Decline in Crypto Mining
Nvidia pointed out that the insignificant increase in its revenue in the third quarter was because of the decline in crypto mining. In 2018, the dump in the price of most digital assets has reversed the high demand for these GPUs. Nevertheless, the company hopes that these changes will be corrected over time especially when the market is less volatile.
The GPU manufacturer said in the report;
“Our near-term results reflect excess channel inventory post the crypto-currency boom, which will be corrected. Our market position and growth opportunities are stronger than ever.
Nvidia is a US-based technological company that specializes in the design of GPUs for gaming and mining. Of late, it has incorporated its GPU’s into robots and cars to meet the trends in technology. It is known to have reached its highest stock last month because of its $289.36 a share. This is over a 1000 percent gain from the past three years.