U.S. chip development company Nvidia is witnessing a drop in shares due to falling CMP (Cryptocurrency Mining Process) sales. The company said its 52% drop in the first quarter of OAM and Others was due to lower CMP sales. Nvidia stated this, as explained in submission On Wednesday.
In 2021, Nvidia recorded $ 24 million in returns from its CMP sources; this also recorded a discouraging decline of 77% over the previous year.
Last January, the corporation introduced the CMP product to discourage cryptocurrency miners from storing existing mining devices like Ethereum’s famous GeForce RTX 3080 Ti.
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Although the chipmaker did not explain the exact amount of sales provided by its CMP sales, it described the value as “nominal” and over $ 155 million in losses over the previous year.
Nvidia shares fell at the end of the first quarter
The company experienced strong quarterly growth from the last quarter of 2021 to the first quarter of 2022, with a yield increase of 8%. He made up to $ 8.98 billion. Its shares also rose 3% to $ 1.36 per share. In addition, the chipmaker said it would continue its buyout program until the end of 2023, which is worth $ 15 billion.
Nvidia and Q2
Nvidia is now recording a steady decline in interest in CMP mining chips during this second quarter. The reasons why this is so can probably be due to Ethereum’s porting to the Proof-of-Stacking mechanism. The current bear market, or recently introduced industry leader products — Intel Corporation. We don’t know, but we do know that the tech giant isn’t doing well in current traffic.
Q2 isn’t starting as interesting as Q1, and experts predict a 4% loss to $ 8 billion in turnover. During trading on Thursday after business hours, shares of Nvidia (NVDA) fell 7% to $ 157.8. Also, NVDA shares experienced a decline of almost 50% in the annual report, reflecting the poor outlook for technology stocks.
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During Q2 last year, Nvidia saw a 33% drop over expected returns, reaching $ 266 million, then $ 106 million in Q3 and $ 24 million in Q4. That value continued to fall. The chipmaker revised its expectations for the second quarter (Q2), summing them up to $ 8.1 billion due to the Russian-Ukrainian war and the blockade in China.
Nvidia CMP and cryptocurrency mining
Nvidia’s CMPs located in Santa Clara can be effective for mining Bitcoin, Ether and other digital assets that use the Proof of Work consensus mechanism. In addition, a gaming token graphics card can be effective for cryptocurrency mining other than limited.
One important fact is that CMPs are very scarce in supply. Even in secondary markets, they are rare. As a result, the chances of selling are lower and lower.
Featured image from Pixabay, chart from TradingView.com