Nvidia Poised For Increased Revenue In Q3 Despite Crypto Mining Decline

Despite a steady decline in crypto mining activity, a number of analysts have maintained that chipmaker Nvidia will see increased revenue this quarter.

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Despite a steady decline in crypto mining activity, a number of analysts have maintained that chipmaker Nvidia will see increased revenue this quarter.

As reported by Market Watch, a FactSet poll suggests that the company will be able to offset any diminishing returns via the increased use of its hardware in gaming devices and in data centers.

The August 10 report states that even though revenue from mining cryptocurrency is expected to fall, the GPU maker still has a bigger chunk of revenue from a growing demand for gaming devices as well as server sales.

According to forecasts by the analysts, the U.S based company’s revenue from sales in the gaming industry will likely hit $1.75 billion. This growth will represent a year-on-year surge of 47 percent.

Similarly, the company’s revenue from the data-centers will spike by over 78 percent, bringing in about $740 million.

The positive outlook for Nvidia is pegged on the fact that the industry is likely to continue seeing major growths in the AI sector and data centers. Also contributing to this is the additional benefits brought on by a new gaming cycle that favors Nvidia.

One of the analysts at Evercore, C.J. Muse, believes Nvidia is on track for more gains.

According to him, “concerns around a likely falloff from cryptocurrency-driven Ethereum GPU mining strength are largely exaggerated, and Nvidia will likely power through any tough compares from cryptocurrency-driven tailwinds.”

Earlier revenues

Nvidia reported in May that it had generated a total of $289 million after selling graphics processors used in the crypto mining industry.

The related sales brought in a total of $3.2 billion, about 9 percent of the company’s total revenue.

The company also revealed that chips used in mining cryptocurrencies such as Ethereum, Monero among others amounted to about 76 percent of its Original Equipment Manufacturer (OEM) revenue.

That meant that revenue from this sector had surged by over 115 percent when compared to the previous quarter.

That aside, the firm had in May projected that its sales in the mining market were set to plummet by about two-thirds in Q2.

It has since been proven right with prices of GPUs declining as the crypto market witnessed a decline in prices of virtual currencies.

The expected decline in revenue from crypto sales has also been reported by Nvidia’s main competitor AMD.

The tanking of prices related to mining hardware has not put off the chip makers and companies like AMD and ASUS continue to envisage growth in coming days.

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