Decline in crypto prices and unstable macroeconomic landscape apparently affected NVIDIA, as the company reported a drop in revenue the second quarter in a row. The Santa Clara-based company said in a financial earnings report that its revenue declined to $6.70 billion, down 19% from Q1, 2022.
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The company thinks that decline in sales was the result of weaker gaming revenue. NVIDIA added that its revenue on the data center area was “somewhat short of our expectations,” as it was reportedly impacted by supply chain disruptions. For Q3, NVIDIA forecasts more decline in revenue, aiming at $5.90 billion.
NVIDIA also commented on the crypto market. Although it had acknowledged that volatility in the cryptocurrency market can impact demand for its products, NVIDIA noted that it was unable to accurately quantify the extent to which reduced cryptocurrency mining contributed to the decline in gaming demand.
In May, the US Securities and Exchange Commission (SEC) fined NVIDIA $5.5 million for “inadequate disclosures” about the impact of cryptocurrency mining on the company’s gaming business.
The SEC said that during consecutive quarters in NVIDIA’s fiscal year 2018, the company “failed to disclose that cryptomining was a significant element of its material revenue growth from the sale of its graphics processing units designed and marketed for gaming.”
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