In its latest earnings report, Nvidia announced it generated $2.21 billion in revenue, just managing to beat expectations the company recently lowered by $500 million. Compared to how the company faired last quarter, Team Green saw a precipitous 31% drop in revenue from $3.18 billion.
Revenue at Nvidia is also down by 24% year-over-year; at this time last year the GPU maker recorded $2.91 billion in revenue. In fact, the last time Nvidia’s revenue was so low it was Q1 FY 2018 back in May 2017 when the company reported $1.94 billion in revenue.
The one silver-lining in Nvidia’s earning’s report was the company set multiple full-year records, including a total $11.72 billion in revenue.
There are multiple contributing factors to Nvidia’s revenue drop. One definite root cause is the cryptocurrency craze dying out in the middle of last year. Of course, another factor is the high prices of Nvidia’s Turing RTX cards dissuaded widespread adoption and resulted in lackluster sales for new GPUs.
Nvidia has already begun reacting to these new market realities by introducing a mid-range GeForce RTX 2060 graphics card and over 40 RTX-powered gaming laptops at CES 2019. We’re also expecting Team Green to release an affordable, non-ray tracing GeForce GTX 1660 Ti on February 22nd.
Going from what Nvidia has recently released and rumors of its future pipeline, it’s easy to expect more lower-priced graphics cards from Nvidia in the near future.