It looks like Nvidia is backing out of the cryptocurrency sector altogether

Nvidia’s downturn in revenues from cryptocurrency miners is set to leave the chip manufacturer looking elsewhere for future revenues…

As we reported last week, chip manufacturer Nvidia, a company whose performance hardware products have done exceedingly well out of the boom in cryptocurrency mining, revealed its second quarter results. On the whole, they made good reading, too. Apart from the part to do with crypto.

With the price of Bitcoin standing at just over a quarter of its end of 2017 peak, many people have gradually drifted away from cryptocurrency mining this year, and as such, demand for performance computer hardware to fuel it has declined with it. In the case of Nvidia, it was predicting revenues of some $400m off the back of hardware for cryptocurrency mining across the whole of 2018. However, the last quarter results have dampened those expectations significantly, with revenue from the crypto mining sector actually standing at less than a fifth of what had been hoped for. That’s a dramatic shortfall.

With a  nice line in understatement, Nvidia’s CEO, Colette Kress said that “whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward”.

Nvidia has enjoyed significant growth in other areas of it business to compensate for the downturn in crypto. However, Kress’ words are now being seen as indication that Nvidia is exiting the cryptocurrency mining sector altogether, with no plans to return. This would be understandable too, given the environmental pressures for one on the idea of electricity-gobbling cryptocurrency mining rigs. But also, the sheer volatility of the price of cryptocurrencies over the last year have made it a tricky business to predict and bank on. Miners may just have had their day…