Nvidia sees decline in crypto mining chip sales despite overall strong quarter

US-based semiconductor giant Nvidia posted strong gains in its fourth-quarter financial report revealed Wednesday. It generated more than $7.64 billion in sales in Q4, recording year-on-year growth of 53%.

While the company overall projected a strong outlook for the first quarter of 2022, the same cannot be said for its cryptocurrency mining chip business. Nvidia’s revenue from its Cryptocurrency Mining Processors (CMP) sales declined from $105 million in Q3 to $24 million in Q4, posting a sharp fall of 77%.

Nvidia’s third-quarter CMP sales were already less than half of what it posted in the second quarter, roughly earning $266 million at the time. The company launched the CMP chips in February 2021 after its demand for new GPS amongst Ethereum miners resulted in a supply shortage.

On the other hand, the company’s revenue in the fourth quarter topped the $7.42 billion average predictions from analysts. Its Q4 adjusted earnings also surpassed analyst estimates of $1.23, posting $1.32 earnings a share.

Jensen Huang, founder and CEO of NVIDIA, said in the press release:

“We are entering the new year with strong momentum across our businesses and excellent traction with our new software business models with NVIDIA AI, NVIDIA Omniverse and NVIDIA DRIVE. GTC is coming. We will announce many new products, applications and partners for NVIDIA computing.”

Nvidia’s rival Intel, the world’s largest semiconductor manufacturer, is expanding its business in cryptocurrency mining with the launch of an energy-efficient crypto mining GPU. It has already onboarded Argo Blockchain, Block (formerly known as Square), and GRIID Infrastructure as some of its earliest clients.

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