Chip giant Nvidia (NVDA) said its contribution from cryptocurrency mining processor (CMP) sales was "nominal" for the first quarter of fiscal 2023, which ended May 1, 2022, weighing on its OEM business unit's year-over-year revenue.
- Nvidia said first-quarter revenue for its "OEM and other" business unit fell 52% to $158 million from the year-ago quarter, due to a decline in cryptocurrency mining processor sales, according to a report.
- The chipmaker did not disclose the exact amount of sales for its mining processor unit in the first quarter, but described it as "nominal" and down from $155 million a year ago.
- This comes after sales of the CMP unit continued to decline with the price of cryptocurrencies in general. In Nvidia's most recent quarter, CMP revenue fell 77% from the previous quarter.
- Nvidia's total revenue for the first quarter was $8.29 billion, beating the consensus estimate of $8.12 billion, according to FactSet. OEM and other contributed only about 2% of first-quarter revenue.
- Adjusted earnings per share of $1.36 beat consensus estimates of $1.30. However, Nvidia issued second-quarter revenue guidance of $8.10 billion, which missed the consensus estimate of $8.399 billion.
- Shares of the chipmaker fell about 7% in after-hours trading Wednesday.
- On May 6, the U.S. Securities and Exchange Commission (SEC) said Nvidia failed to disclose that cryptomining was a material contributor to its 2018 revenue.