Nvidia’s ETH Mining Chips Fall $134M Short On Earnings Projections

Nvidia’s ETH mining chip line dropped to $266 million in the second quarter while still remaining the biggest chip maker in the US so let’s read more in our Ethereum news today.

The Nvidia products are used in gaming and crypto mining so the company made some moves to appease gamers by launching a new line of products. Midway through the last quarter, the US biggest computer chip maker Nvidia predicted that the crypto mining products would create $400 million in revenue but that didn’t happen. Nvidia’s ETH mining chips fell $134M short on the projections.

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The CMP-crypto mining processors line registered just $266 million in sales in the second quarter, despite the company posting a better projector of $6.5 billion in total revenue and $1 billion in profit according to the earnings report. The international supply shortage only made things worse as Nvidia reorganized its business to appeal to gamers more. ETH miners that use the same type of GPU machines to validate blockchain transactions and mint ETH, were getting their hands on the chips as the price of teh coin rallied to a record high. GPUs were selling for three to four times the normal rate and kicked gamers out of the market.

It’s GeForce graphic cards made them less powerful for mining rigs because it was made for gaming. The hemmed miners into the CMP product line had unveiled in February and unlike other products, CMP graphic cards are not capable of producing graphics. The functionality was removed to make it better for crypto mining which is reliant on hardware with a lot of processing power and an increase in airflow. Graphic cards still make up a huge chunk of Nvidia’s business and account for 65% of the revenue but graphic cards are just 7% of the revenues. The company isn’t making crypto a mainstay of this unit in the future as Ethereum is transitioning away from mining in the next few months. Nvidia could start revising the next quarter’s predictions now.

As recently reported, One of the most influential men in tech believes that the metaverse which is a term for series of interlinked persistent virtual worlds that have self-contained economies is around the corner. One of the most exciting use cases for NFT and blockchain, enthusiasts inspired by Neal Stephenson’s Snow Crash were hoping for a VR/AR world with a crypto-powered internal market. Now, however, Nvidia’s CEO says that the technology to make this happen is fast approaching.

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Author: Stefan