The cryptocurrency proved to be more of a jinx for Nvidia. The reason is that cryptocurrency mining became illegal in many countries since 2018. On top of that, some of the countries are putting regulations on the cryptocurrency miners. After a subtle decline in sales of the next-gen GPU, the corporation said that they’re back and the business has become stable now.
In the second quarter of the fiscal year, Nvidia reports that its profit and business are skyrocketing. According to Nvidia, the company did go through a revenue growth of around 17%, which is equal to $2.58 billion. There is a massive surge in Nvidia’s revenue due to the 24% growth in the gaming industry. In addition to this, the data center industry has also seen a rise of around 3%, which eventually benefitted Nvidia.
Colette Kress, the Chief Financial Officer of Nvidia, said during a conference call that their business has become healthy and better. Moreover, they did also reach a reasonable level over the past two quarters. Now, the company is optimistic concerning its growth and profit. Kress also went through a brief interview right after the conference call ended. In the interview with MarketWatch, Kress said that we feel extremely lively with their sequential growth on various aspects of their platforms.
The on-going trade war between China and America did show the stocks of Nvidia has risen to 3%. Later on Thursday, the final report said that Nvidia’s share is over 6% after a few hours of trading on Thursday.
Just a year ago, the revenue of Nvidia was down at around 17% as the gaming industry was also down to 27%. In addition to this, the notable data-center businesses were down to almost 14%. Currently, Nvidia forecasting that the company will go through a single-digit reduction in its third-quarter fiscal. The company might generate revenue of around $2.90 billion alongside a minus or plus of 2%.
The gaming business went through a fatal due to the company’s decision to adopt the cutting-edge Turing architecture in 2018. The video games that came into being in 2018 didn’t need the next-gen ray-tracing tech. The chief executive of Nvidia, Jensen Huang, said that in 2019 there is a demand for the GPU with ray-tracing technology. Games like Red Dead Redemption 2 and Devil May Cry 5 needs a lot of power from the GPU to provide adequate FPS.
Currently, Nvidia is not in the high-growth era, and neither is the company sinking now. Things might get better for Nvidia as the gaming industry is advancing its foundation.