Nvidia warned on its second-quarter conference call that it won't make money from cryptocurrency going forward.
Nvidia's actual crypto-specific revenue was lower than expected.
The chipmaker cut its revenue guidance for the third quarter.
Nvidia's crypto business is dead and it's never coming back, the chipmaker said on its second-quarter earnings call.
"We believe we've reached a normal period as we're looking forward to essentially no cryptocurrency as we move forward," Nvidia CFO Colette said.
"Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million, and we now expect a negligible contribution going forward."
The writing of a crypto slowdown had been on the wall for quite some time. In May, Nvidia warned investors that a steep decline in prices, coupled with a potential shift in ethereum's mining rules, would bring an end to the its crypto boom.
And in July, Nvidia competitor AMD said on its second-quarter earnings call that it expects the impact from crypto to fall to nearly zero in the third quarter.
Following Thursday's closing bell, Nvidia announced second-quarter earnings of $1.94 a share on revenue of $3.12 billion. Wall Street analysts surveyed by Bloomberg had expected earnings of $1.85 a share and revenue of $3.11 billion.
Nvidia cut its guidance for the next quarter and now sees its revenue to be within 2% of $3.25 billion versus its previous estimate of $3.34 billion.
"Even with the weaker outlook, sales are growing 23% y/y, just as the sustainable revenue streams are beating consensus," SunTrust analyst William Stein said in a note sent out to clients after the results. Stein has a target price of $316 and maintains "buy" rating for Nvidia.
Shares of Nvidia slid about 2% on Thursday on trading and are up 25% since the start of this year.
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