Nvidia Shares Plunges After Q1 Figures, Crypto Mining Card Revenue ‘Nominal. The share price of US graphics card maker Nvidia slumped after trading hours on Thursday as second-quarter revenue prospects fell short of expectations.
Quarterly growth from the fourth quarter of 2021 to the first quarter of 2022 was strong with revenue up 8% to $8.98 billion and earnings per share up 3% to $1.36.
It also stated that it would continue a $15 billion share buyback program through the end of 2023, according to the filing with the Securities and Exchange Commission (SEC).
However, the outlook for the second quarter is much less promising, with revenue from projects set to be $8.1 billion, 4% lower than expected.
The disappointing guidance did not impress investors after hours of trading on Thursday with shares of Nvidia (NVDA) falling 7% to $157.8. NVDA is down nearly 50% for the year, reflecting the poor performance of tech stocks across the market.
The tech company saw sales of its cryptocurrency mining processor (CMP) drop in the first quarter to “nominal” levels compared to $155 million a year ago. The filing doesn’t specify the exact revenues of the CMPs, but revenues have been falling since last year.
Nvidia saw a 33% shortfall in expected CMP revenue in the second quarter of last year to $266 million, followed by $105 million in the third quarter and then $24 million in the fourth quarter. That has now dropped again.
Nvidia revised its second-quarter revenue expectations in the report to $8.1 billion “plus or minus 2%” due to “Russia and China’s COVID lockdowns.”
Those two factors alone could reduce revenue by as much as $500 million, the report says.
The Santa Clara-based company’s CMPs can be used to mine Bitcoin (BTC), Ethereum (ETH), and a variety of other cryptocurrencies. Its graphics cards, designed for gaming, can also be used to mine cryptocurrencies unless limited.
CMP supplies are extremely tight even in secondary markets, possibly causing sales to be so low. A new CMP 170HX, the highest-value model to date, cost $4,700 when it launched last October.
On May 6, Nvidia was forced to pay $5.5 million to the SEC to settle a case in which it was accused of failing to disclose how much of its revenue came from crypto mining in 2018. The announcement spooked investors. , which NVDA sold 6% less. on May 9, the next trading day.
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