Colette Kress, CFO of graphics card big Nvidia, mentioned the corporate did not anticipate that decrease demand for crypto mining impacted its second-quarter outcomes, which fell in need of analysts’ expectations on Wednesday.

The chip big launched its financial outcomes for the three months ended July 31, which revealed income fell 19% sequentially to $6.5 billion, whereas web revenue fell 59% to $656 million.

Income for its gaming division, which incorporates gross sales of its high-end GPUs, fell 44% sequentially to $2.04 billion, which Nvidia attributed to “difficult market circumstances.”

Kress, who additionally serves as the corporate’s govt vice chairman, mentioned Nvidia has restricted perception into the affect of the crypto market on demand for its gaming merchandise:

“Our GPUs are able to mining cryptocurrencies, though now we have restricted perception into how this impacts our total GPU wants.”

“We’re unable to precisely quantify how decreased cryptocurrency mining has contributed to the decline in gaming demand,” she added.

Whereas the chip big’s graphics processing models (GPUs) have been designed for gaming functions, high demand for crypto mining actions over the previous few years has helped the corporate’s share value surge by 320% over the previous 5 years.

Nonetheless, Kress mentioned that traditionally, falling crypto costs and modifications within the consensus mechanism have impacted demand for its merchandise and the power to gauge them:

“Volatility within the cryptocurrency market – corresponding to declines within the value of cryptocurrencies or modifications within the methodology of verifying transactions, together with proof of labor or proof of participation – has traditionally impacted demand for our merchandise and our capabilities and will accomplish that sooner or later do to estimate it precisely.”

With the Ethereum merge scheduled for September 15, the community’s proof-of-stake consensus change might additional drive down demand for crypto mining {hardware}. This might spell bother for cryptocurrency mining merchandise like Nvidia’s CMP170 HX, which presently prices round $4,695.

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That being mentioned, cryptocurrencies like Bitcoin (BTC), Litecoin (LTC), Monero (XMR), and Dogecoin (DOGE) are among the many networks nonetheless working with proof-of-work consensus mechanisms, with no discernible plans for a transition going ahead .

Nvidia’s share value can be down 5.89% over the previous 5 days on the Nasdaq.