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Nvidia Allegedly Earned $1.35 Billion More in Crypto Revenue Than Acknowledged, as per Analyst

Nvidia, the Taiwan-based computer hardware producer, apparently earned around $1.35 billion more due to cryptocurrency and blockchain-related revenue than it had affirmed. The numbers were calculated by RBC Capital Markets analyst Mitch Steves, financial news website Market Insider reports on Jan. 31.

Steves purportedly mentioned in a note released on Jan. 30 that as per his calculations, Nvidia generated about $1.95 billion in total revenue related to blockchain and cryptocurrency, noting that the official company’s statement mentioned that it created more than $600 million over the same time period.

His calculations supposedly exposed that the Nvidia’s total cryptocurrency-related revenue from April 2017 to July 2018 should be around $2.75 billion. Interestingly, this estimate is based on the hash rate of Ethereum and other digital assets that required GPUs at the time.

As per Market Insider, Steves assumed Nvidia had a 75% market share of GPUs sold for mining motives. Interestingly, the IT company AMD controlled the rest. Moreover, the article further notes that the analyst acknowledged that there is no means to substantiate those numbers.

Moreover, Steves purportedly suggests that a recent AMD earnings report further confirms his thesis. An analyst had mentioned that the company could still be facing troubles due to a “crypto hangover,” before the release of this report.

Released on Jan. 29, AMD’s report noted that the company expects the revenue of the first quarter to be roughly $1.25 billion, which is down twenty-four percent compared to the preceding years. The primary reasons for the downfall illustrated in the document are “the absence of blockchain-related GPU revenue, excess channel inventory, and lower memory sales.”

It is to be noted that Nvidia’s stocks plunged by approximately 5 percent in the extended session, in the wake of the estimated release. Commenting on the recent RBC note, Tech news website TechSpot connoted that the abrupt decline in stock is a sturdy incentive for Nvidia to camouflage large fluctuations in revenue.

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CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin5,582.53 0.23 % 3.93 % 8.16 %
Ethereum173.17 0.49 % 0.57 % 4.45 %
XRP0.323 0.21 % 0.32 % 0.25 %
Litecoin77.64 0.01 % 0.83 % 3.56 %
Bitcoin Cash297.36 0.45 % 1.62 % 5.92 %