Nvidia said Friday it expects little from the sale of chips for cryptocurrency mining in the second half of the year. That pushed the stock down 5 percent Friday.

Nvidia, like Advanced Micro Devices, which released earnings last month, once made a lot of money supplying the graphics processing unit (GPU) chips used by some cryptocurrency miners. No more. During the company’s earnings conference call, CEO Jensen Huang gave analysts the bad news. 

“We benefited in the last several quarters from an unusual lift from crypto,” Huang said, “but at this time, we consider it to be immaterial for the second half” of the fiscal year.

Sales of GPUs used for cryptocurrency mining slid to $18 million in the fiscal second quarter from $289 million, way short of the $100 million Nvidia had forecast for the quarter.

During the same call, CFO Collette Kress said Nvidia expects “negligible” crypto revenue, and is factoring “no contribution from crypto in our outlook.”

The company blamed the selloff in bitcoin (BTC) and other cryptocurrencies and a drop in the need for its mining tools for the falloff in sales. Read more here.

ThirtyK Staff
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