Nvidia Says ‘Nominal’ Crypto Mining Chip Sales Behind 52% Decline In OEM Revenue

Chip manufacturer NVIDIA Corporation NVDA attributed its 52% decline in “OEM and Other” market platform revenue to a decline in Cryptocurrency Mining Processor (CMP) sales.

What Happened: In an SEC filing on Wednesday, Nvidia reported $158 million in OEM and Other revenue for the first quarter.

Nvidia said the year-on-year decrease was due to the decline in CMP revenue, which was “nominal” in the quarter compared to the $155 million from a year ago. The firm did not disclose specific numbers with regard to CMP revenue for the quarter.

Last quarter, Nvidia reported $24 million in revenue from its CMP line, which represented a decline of 77% year-over-year.

The CMP product line was first introduced in January 2021 as an attempt to dissuade crypto miners from hoarding its existing chips like the GeForce RTX 3080 Ti, which was particularly popular among Ethereum ETH/USD miners.

It is unclear whether the root cause behind the declining interest in CMP chips is due to a downturn in crypto prices, Ethereum’s impending shift to Proof-of-Stake — which would make mining redundant, or recently launched competing products from tech giants like Intel Corporation INTC.

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Price Action: Nvidia shares traded 9.93% lower during the after-market session on Wednesday.