NVIDIA cryptocurrency revenues fall 82% below $100m estimate for last quarter

Despite expecting cryptocurrency revenues of $100 million last quarter, NVIDIA has revealed it generated just of $18 million during the period.

Following the shortfall, the hardware manufacturer now expects cryptocurrency to make "a negligible contribution going forward".

Games revenue was up by 52 per cent and accounted for $1.8 billion of the firm's $3.1 billion revenue for the period.

Company-wide revenue grew 40 per cent from $2.2 billion, and profits increased year-on-year 51 per cent, from $1.3 billion to $1.9 billion,

Despite this, the OEM side of its business took a considerable hit, falling 54 per cent year on year and 70 per cent sequentially.

Executive vice president and CFO Colette Kress attributed the decline primarily to cryptocurrency.

President and CEO Jensen Huang said during an investor call that NVIDIA's year-on-year performance has been "terrific", but suggested cryptocurrency would be less prominent in company's immediate future.

"It is the case that we benefited in the last several quarters from an unusual lift from crypto," he said, referring to the firm's recent record revenues.

"In the beginning of the year, we thought and we projected that crypto would be a larger contribution through the rest of year. But, at this time, we consider it to be immaterial for the second half."

According to Huang, a change in the mining market is what brought about the shift.

"At the current prices, it doesn't make much sense for new cards to be sold into the mining market," he said.

"The existing capacity is still being used. And you can see the hash rates continue. And so, my sense is that the installed base of miners will continue to use their cards."