Financial Report Reveals Nvidia ETH Mining GPUs Performance Was Below Expectations

Based on the second-quarter earnings report of Nvidia, the performance of the ETH mining GPUs is below expectations. This is despite the overall increase of up to 68% in the total revenues.
Nvidia Revenue Increases by 68%, Crypto Mining Cards Perform Below Expectations
Nvidia has released its second-quarter financial report for the 2022 fiscal year. From the report, the tech giant revealed a 68% increase in the firm’s revenue.
Despite this huge improvement, however, the product line of the company in the crypto space – Crypto Mining Processors has failed to meet its expectations.
Earlier this year, Nvidia introduced a new product line of GPUs for ETH miners. Though the processor cards don’t have most of the features in gaming GPUs, they offer a very high hashrate performance.
In the second fiscal quarter that closed on the 1st of August, these Crypto Mining Processors (CMP) cards returned about $266 million in revenue. However, the firm was expected to return up to $400 million. This is about $134 million less than the realized figure.
There are other areas of the company that performed more than expected. An example is a revenue from the Data Center of about $2.37 billion that increased by 35% from the revenue recorded last year.
There is a huge increase in other Graphics cards outside the Ethereum mining cards. These other graphics cards saw a tremendous increase up to 85% from last year’s figure as the revenue recorded stood at $3.06 billion.
The total revenue reported by Nvidia is about $6.5 billion for the second quarter 2022 fiscal year. This value forms a 68% increase from the figure reported last year.
Shortage in the GPU and Ethereum Mining Globally
Resulting from the COVID-19 pandemic, there is silicon shortage globally which affects many industries, computer parts inclusive.
The shortage in the supply level compared to the demand level resulted in a hike in price. And the matter got worse with the Ethereum miners.
While trying to solve the hoarding in gamers’ GPUs, Nvidia created another GPU series specifically for miners called Crypto Mining Processors (CMP). The company also reduce the mining hashrate of the previous GPUs by 50% in a new version released to make miners patronize the CMP cards. However, there was a workaround released by a mining software that could increase the hashrate to about 70%.
The CEO of Nvidia, Jensen Huang, commented on the issue earlier this year in an interview, and he said the possible solution is the Ethereum 2.0. The switch to Ethereum Proof-of-Stake means that there wouldn’t be a need for high computing power to run nodes as would in Proof-of-Work. Thus, creating ease in the demand.
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