Nvidia Just Beat in its Earnings Report but Cryptocurrency Chip Sales Faltered

Tech giant Nvidia reported its earnings this week for the second quarter which ended on August 1st. The company beat estimates by analysts as graphic card sales were strong during the period.

Unfortunately the company’s cryptocurrency chip product, CMP, had lower sales than the company predicted in May.

For the second quarter, Nvidia reported earnings adjusted of $1.04. This compared to $1.01 expected according to Refinitiv estimates. Revenue at $6.51 billion were better than the $6.33 billion that were expected.

Looking ahead the company has forecast $6.8 billion in revenue in the current quarter, beating Refinitiv expectations of $6.5 billion.

Nvidia’s revenue rose 68% annually during the quarter. In the previous quarter, sales had jumped 84%.

Nvidia’s graphics segment jumped 87% to $3.91 billion, growing faster than the compute and network segment, which includes chips for data centers. Compute and network grew 46% to $2.6 billion.

Gaming was up 85% to $3.06 billion. The company said the increase in gaming sales was due to both GeForce graphics card sales as well as the chips it sells to game console makers, such as the processor at the heart of the Nintendo Switch.

The company’s data center business also hit an all-time high, growing 35% annually to $2.37 billion.

Cryptocurrency revenue however was $266 million in cryptocurrency card sales, more than 33% lower than expectations. Nvidia had said this past spring that the cards would have sales of around $400 million in the August quarter.

Last year, Nvidia said it planned to buy Arm, which makes important intellectual property for mobile chips, for $40 billion.

“Although some Arm licensees have expressed concerns or objected to the transaction, and discussions with regulators are taking longer than initially thought, we are confident in the deal and that regulators should recognize the benefits of the acquisition to Arm, its licensees, and the industry,” Nvidia said.

Shares are up over 57% in the last year.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.