Analysts: Despite Crypto Mining Decline, Nvidia Will See Increased Revenue This Quarter

Analysts polled by FactSet suggest that Nvidia will see increased revenue this quarter despite "Waning" cryptocurrency mining, Marketwatch reported August 10.

While analysts suggest that the company's revenue from crypto mining hardware will decline, the U.S.-based graphic processing units manufacturer will see significant growth in its gaming and servers sales.

Revenue from Nvidia's gaming sector is expected to grow by 47 percent to $1.75 billion on a year-on-year basis while data-center revenue is expected to surge 78 percent to $740 million.

"We believe concerns around a likely falloff from cryptocurrency-driven Ethereum GPU mining strength are largely exaggerated, and Nvidia will likely power through any tough compares from cryptocurrency-driven tailwinds."

In May, Nvidia reported that it generated $289 million from processor sales to the crypto market.

Nvidia's first-quarter crypto sales amounted to over 9 percent of overall revenue for the company, which stood at $3.2 billion.

Chips for crypto mining made up 76 percent of OEM revenue, which was up 115 percent from the previous quarter.

Nvidia's main competitor Advanced Micro Devices unveiled in April that 10 percent of the company's revenue during the quarter was attributed to blockchain or mining, though the company's CEO Lisa Su said that blockchain was "a bit of a distraction in the short term."

The mining hardware price fall has not dissuaded manufacturers from producing new crypto mining hardware.

In May, ASUS announced the release of its "Second generation" cryptocurrency mining motherboard, which was scheduled to launch in North America at the beginning of the third quarter of 2018.