U.S. markets open in 7 hours 34 minutes
  • S&P Futures

    4,507.75
    -3.50 (-0.08%)
     
  • Dow Futures

    35,311.00
    -12.00 (-0.03%)
     
  • Nasdaq Futures

    15,380.00
    -18.50 (-0.12%)
     
  • Russell 2000 Futures

    2,270.70
    -2.10 (-0.09%)
     
  • Crude Oil

    82.76
    -0.20 (-0.24%)
     
  • Gold

    1,775.00
    +4.50 (+0.25%)
     
  • Silver

    23.86
    -0.02 (-0.10%)
     
  • EUR/USD

    1.1650
    +0.0012 (+0.10%)
     
  • 10-Yr Bond

    1.6350
    0.0000 (0.00%)
     
  • Vix

    15.70
    -0.61 (-3.74%)
     
  • GBP/USD

    1.3808
    +0.0014 (+0.10%)
     
  • USD/JPY

    114.5790
    +0.2190 (+0.19%)
     
  • BTC-USD

    63,691.49
    +1,242.89 (+1.99%)
     
  • CMC Crypto 200

    1,475.47
    +12.11 (+0.83%)
     
  • FTSE 100

    7,217.53
    +13.70 (+0.19%)
     
  • Nikkei 225

    29,256.10
    +40.58 (+0.14%)
     

NVIDIA: Our crypto business is dead and it's never coming back (NVDA)

nvidia gaming laptops
nvidia gaming laptops

Nvidia

  • 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.

  • Watch Nvidia trade in real time here.

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.

Nvidia
Nvidia

Markets Insider

NOW WATCH: How Columbia House sold 12 CDS for $1

See Also: