Crypto

Taiwanese Computer Hardware company Nvidia makes $1.35 Billion more in Crypto trading than claimed

Nvidia which is a Taiwan-based computer hardware producer company has reportedly earned around $1.35 billion more in crypto and blockchain trading than it claimed. The figures were calculated by analyst Mitch Steves who is associated with RBC Capital Markets.

As per Steves’s calculations, Nvidia made almost $1.95 billion in total revenue from its cryptocurrency and blockchain trading in contrary to $602 which is the official company’s statement as claimed earlier over the same period. His calculations brought to light that the total crypto-related revenue of Nvidia’s for the period between April 2017 to July 2018 is around $2.75 billion. This conclusion is based on the hash rate set by Ethereum (ETH) and other cryptocurrencies that uses graphics processing units (GPUs) at the time of calculation.

Nvidia is a technology corporation founded in 1993 and headquartered in California, United States. The main products of Nvidia include central processing units (CPU), graphics processing units (GBU) and chipsets. Nvidia is one of the largest hardware developers in the world, with only one major competitor — AMD. Nvidia has greatly profited from the outburst of cryptocurrency popularity. A lot of miners use products from Nvidia for Bitcoin mining. As Nvidia provides most of consumers GPUs, mining with Nvidia’s products has become widespread. Seeing the emerging consuming base, Nvidia developed mining drivers and technologies for improving the speed of mining. Nvidia’s GPU Technology Conference is one of the main IT events that gathers people from different fields, including the cryptocurrency industry, and where various applications of AI and deep learning are presented.

As per Steves, Nvidia had almost 75 percent of the entire market share of the mining purposes under GPU while AMD which is an IT company had the rest, as per the AMD earnings report. However, in recent times, the company may be facing problems due to so-called “crypto hangover.”

As per a recent news report, the company is expecting the net revenue in the first quarter to be around $1.25 billion which is again down by 24 percent when compared to the previous year. The company claims that the reason behind the decline could be lower memory sales, non-existing blockchain-related GPU revenue or even excess channel inventory.

As per the analysis conducted by Steves, AMD’s report states that the company might have had around $230 million in the first two quarters of the previous year which is matched against a quarter of the total revenue from crypto trading.

Earlier in Nov’18, when the third quarter of report was released, the CEO of the company Jensen Huang said that the company’s forecasting reflects excess channel inventory which posts the cryptocurrency boom and would be rectified.

In recent times, Nvidia’s stocks had fallen over 5 percent. The steep fall in the stock price is a learning curve for the company and can be taken as a trigger point for masking large fluctuations in revenue.

As per a news periodical, Nvidia has underestimated its financial estimates of Q4 for the fiscal year of 2019, the reason being in the decline of the mining activities along with weaker gaming and low data center sales.

Sandra Burke
About author

Having background in journalism and computer science, Sandra Burke serves FinanceKnown team with multiple roles ranging from photo & video editor, news editor to news reporter. Along with all, she loves to write news stories on global economy. In her free time, she loves to explore new graphics related softwares.
Related posts
Crypto

Trading Platform eToro Announces Grand Online Trading Competition at Blockshow Asia, 2019

Crypto

Telegram Mulls Postponement of Gram Issuance Date After the US Stops Its Token Sale

Crypto

Real Estate Projects in Russia will Now Use Blockchain Technology for Obvious Benefits

Crypto

Facebook Acqui-Hires Majority of Chainspace Team to Enter Blockchain Market

Leave a Reply

Your email address will not be published. Required fields are marked *