Cryptocurrency

Digital coins have droped Nvidia’s financial profitability for Q1 2018

Nvidia has undoubtedly been very successful in selling chips for data centers, producing mines for coins, and specialized firmware for this particular portion of professionals, but this has not been translated into expected levels of profitability, based on its financial results for the first quarter (Q1) of 2018.

The company has revealed that chip maker’s earnings for data centers have been downgraded to several million dollars, and profits from mining cryptography are expected to fall significantly. According to a report by Reuters, Nvidia’s data center activities increased 71% to $ 701 million, but analysts expected it to reach $ 703 million.

With regard to chip sales for coal miners, Nvidia earned $ 289 million, or about 9% of the company’s total revenue of $ 3.2 billion. But for a strange reason, the aforementioned figures resulted in a fall in the value of the stock by 3.3%, due to the fact that the digital coinage industry is extremely unstable.

The company’s chief financial officer, Colette Kress, said Nvidia expects sales-related earnings to be reduced by 65% ​​in the next quarter to $ 100 million.

However, it is a common secret that the digital mining sector is constantly looking for new ways and methods for gaining extra profits, so it should not be impressed that the methodology of the previous months is characterized overnight overdue.