NVIDIA: Our crypto business is dead and it's never coming back
- 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.
