RBC Capital Markets Analyst Investigates Nvidia Earnings, Discovers Over $1 Billion More Than Stated

Nvidia is known for its computer hardware and has become practically a household name for anyone who owns some kind of computer. In a report from Nvidia, the company commented that they had earned $602 million from April 2017 to July 2018. However, an analyst from RBC Capital Markets, Mitch Steves, discovered that this is not the case.

In most circumstances, the difference in what was reported and what an analyst discovered is different because the brand earned less. However, in a note that Steves released on January 30th, he exposed that the earnings for that company during that time was $1.95 billion in total revenue, as it relates to cryptocurrency and blockchain. These calculations applied the hash rate of Ethereum, along with GPU-reliant cryptocurrencies at the time.

According to Market Insider, who released the reports, Steves alleged that Nvidia was responsible for 75% of the market shares for all GPUs sold then. The rest was credited to AMD, though there is no way to confirm that the numbers Steves assumed are accurate, according to Market Insider. However, Steves insists that the AMD earnings report confirms it, saying that a “crypto hangover” is the cause of AMD having a lesser portion of the sales.

The report from AMD shows that they expect $1.25 billion in revenue during the first quarter, though that number is 24% lower than the years before. In the document, AMD states that the decline is based on

“excess channel inventory, the absence of blockchain-related GPU revenue and lower memory sales.”

Steves says that the report from AMD suggests that there was $234 million in revenue during last year’s first quarter. That number would account for 25% of the total crypto revenue, which would support his findings.

CEO Jensen Huang of Nvidia had commented on his company’s earnings report for the third quarter, which was released in November. He noted that their

“near-term results reflect excess channel inventory post the cryptocurrency boom, which will be corrected.”

When the estimates were released for Nvidia, stocks quickly fell about 5. Techspot, a news website for technology, commented on the information from RBC, saying,

“[T]he steep falls [in stock] are a strong incentive for Nvidia to mask large fluctuations in revenue.”

Nvidia has declined to comment on this story.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide