Analyst Note| Abhinav Davuluri, CFA |
Wide-moat Nvidia reported remarkable second-quarter results with revenue ahead of management’s guidance. During the quarter, Nvidia benefited from cryptocurrency mining demand, including crypto mining processor, or CMP, sales of $266 million. We note this is lower than management’s CMP forecast of $400 million. CFO Colette Kress admitted the contribution of crypto to gaming revenue is difficult to quantify, whereas CMP sales are recorded in the OEM segment. In the third quarter, Kress expects minimal CMP sales, which we attribute to weaker crypto prices and the introduction of custom ASICs to mine Ethereum.