Crypto-driven GPU crash makes Nvidia miss Q2 projections by $1.4 billion

The company doesn't officially announce its second-quarter financial results until the end of the month but is trying to make up for it by releasing preliminary results today. The results are mixed at best, as has been the case with many other tech companies. The results are bad because the revenue was down from a previous forecast of $8.1 billion.

The shortfall was blamed on weaker than expected demand for its gaming products. The reduction in channel partner sales was attributed to the fact that they were less selling new graphics cards than expected. The drop can be attributed to a crash in the value of mining-based cryptocurrencies, as fewer miners are buying these cards, and miners are looking to unload their GPUs on the secondhand market.

In order to adjust channel prices and inventory, we took actions with our gaming partners. We may see more price drops for existing graphics cards, which have already been dropping in price. Some cards are still not reverting to their advertised prices, but they are getting closer to it.

Thanks to its semi-custom hardware powered consoles like the Xbox Series S and X and the PS 5, the revenue of the gaming division of Advanced Micro Devices has grown from a year ago. PC gaming is more important to the company than the Nintendo Switch.

The small increase in revenue is the result of the company's data center business, which includes machine learning applications and graphics processing units. The revenue of the data center is expected to increase by 61 percent.

According to reports, the next generation of the Turing series of graphics cards will be launched later this year. Some people who sat out the RTX 3000 series due to shortages and inflated prices are now avoiding the GPUs because they know a new one will be available soon.