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Nvidia allegedly misinformed investors about crypto mining revenues

A new report shows how Nvidia might have misinformed its investors about revenues recorded between mid-2017 – mid-2018. (Source: Bitcoin Exchange Guide)
A new report shows how Nvidia might have misinformed its investors about revenues recorded between mid-2017 – mid-2018. (Source: Bitcoin Exchange Guide)
Latest report coming from RBC analyst Mitch Steves presents Nvidia misinforming its investors about revenues recorded during the crypto boom of 2017. We're talking about over US$1.3 billion that were not attributed to GPU sold to crypto miners. The report also claims that AMD's revenues at that time only amounted to US$234 million, which is unusual to say the least, as the Radeon cards were more efficient back then.
Bogdan Solca,
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The primary factor that lead to Nvidia’s recent financial problems is clearly the GPU-based crypto mining decline that occurred in early 2018. The green team warned its investors about severely diminished revenues as early as Q2 2018, but a recent report by RBC analyst Mitch Steves presents problematic incongruities in how Nvidia actually informed its investors about crypto-related sales recorded between April 2018 and July 2018.

Steves claims that Nvidia generated US$1.95 billion from crypto-related sales in the aforementioned period, but the green team’s reported states that the revenue only amounted to US$602 million. Moreover, the cumulated crypto-related revenue in that period should be close to US$2.75 billion, and AMD apparently generated only around US$234 million. This seems quite improbable, as AMDs cards were considered faster and they also were cheaper at that time. However, Steves points out that AMD’s 2018 financial report support his calculations, revealing that the crypto exposure for the red team in Q1 2018 amounted to exactly US$234 million.

One big problem with this report is Steves’ belief that the numbers can’t be confirmed, as the GPU sales during the crypto boom of 2017 do not specifically show how many GPUs were actually sold for mining purposes. Nvidia’s stocks already dropped to some of the lowest figures in years and important investors even threatened to sell their shares, so this report could not have come at a better time. Nvidia is expected to reveal more figures in its next financial report that will be released on February 14.

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Bogdan Solca
Bogdan Solca - Senior Tech Writer - 1540 articles published on Notebookcheck since 2017
I first stepped into the wondrous IT&C world when I was around seven years old. I was instantly fascinated by computerized graphics, whether they were from games or 3D applications like 3D Max. I'm also an avid reader of science fiction, an astrophysics aficionado, and a crypto geek. I started writing PC-related articles for Softpedia and a few blogs back in 2006. I joined the Notebookcheck team in the summer of 2017 and am currently a senior tech writer mostly covering processor, GPU, and laptop news.
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2019 02 > Nvidia allegedly misinformed investors about crypto mining revenues
Bogdan Solca, 2019-02- 5 (Update: 2019-02- 5)