Nvidia Stock Down 4%, Company Blames Limited Visibility Into Crypto Mining Industry in Q2 Results
- Although Nvidia reported revenue of $6.70 billion, up 3 percent from a year ago, the company has cited increased volatility in cryptocurrency prices as a major headwind.
- The company’s revenue for the second quarter of fiscal 2023 was lower than earlier forecasted primarily due to weaker gaming revenue.
- Forward, the company said revenue for the third quarter of fiscal 2023 is expected to be $5.90 billion, plus or minus 2 percent.
Nvidia Corp. (NASDAQ: NVDA) shares are trading around $165.41 during Thursday’s premarket, approximately 4 percent down from yesterday’s closing price. The downside in volatility has been attributed to financial results for the second quarter of fiscal 2023, which were released on Wednesday, August 24, 2022.
Although Nvidia reported revenue of $6.70 billion, up 3 percent from a year ago, the company has cited increased volatility in cryptocurrency prices as a major headwind.
Notably, Nvidia’s GPUs are capable of cryptocurrency mining. However, as global regulators push the cryptocurrency industry toward proof-of-stake from the traditional proof-of-work, Nvidia has cited limited visibility into the industry.
“As noted last quarter, we had expected cryptocurrency mining to make a diminishing contribution to Gaming demand. We are unable to accurately quantify the extent to which reduced cryptocurrency mining contributed to the decline in Gaming demand,” the company noted in the Q2 report.
Nvidia Q2 Financial Highlights and Market Outlook
The company’s revenue for the second quarter of fiscal 2023 was lower than earlier forecasted primarily due to weaker gaming revenue. The gaming section brought in a revenue of $2.04 billion, down 33 percent from a year ago and down 44 percent from the previous quarter.
Notably, the company’s GAAP earnings per diluted share for the second quarter came in at $0.26, down 72 percent from a year ago and down 59 percent from the previous quarter.
During the second quarter of fiscal 2023, the company returned to shareholders $3.44 billion in share repurchases and cash dividends, following a return of $2.10 billion in the first quarter. Reportedly, the company has $11.93 billion remaining under its share repurchase program scheduled to go through December 2023.
The company has said that it will pay its next quarterly cash dividend of $0.04 per share on September 29, 2022, to all shareholders of record on September 8, 2022.
Forward, the company said revenue for the third quarter of fiscal 2023 is expected to be $5.90 billion, plus or minus 2 percent. Additionally, the company hinted that it is working on venturing into the metaverse industry.
The move to venture into the metaverse industry may not be surprising to many as other tech giants are moving in a similar direction.
“I look forward to next month’s GTC conference, where we will share new advances in RTX, as well as breakthroughs in AI and the metaverse, the next evolution of the internet,” said Jensen Huang, founder, and CEO of NVIDIA
The company has a market capitalization of $429.52 billion after its stock market dropped around 41 percent YTD, according to market data provided by MarketWatch.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
