NVIDIA: Essentially no crypto demand going forward

During NVIDIA's second-quarter earnings call, CFO Colette Kress mentioned that the company anticipates essentially no cryptocurrency mining demand as we move forward. She made the remark after an analyst's question about the company's relatively weak guidance. Kress explained NVIDIA expects gross margins to normalize, after a period of elevated gross margins due to crypto:

Vivek Arya
Actually, just a clarification, and then the question. On the clarification, Colette if you could also help us understand the gross margin sequencing from Q2 to Q3? And then, Jensen, how would you contrast the Pascal cycle with the Turing cycle? Because, I think in your remarks, you mentioned Turing is a very strong advancement over what you had before. But, when you launched Pascal, you had guided to very strong Q3s and then Q4s. This time, the Q3 outlook, even though it’s good on an absolute basis, on a sequential and a relative basis, it’s perhaps not as strong. So, could you just help us contrast the Pascal cycle with what we should expect with the Turing cycle?

Colette Kress
Let me start first with your question regarding gross margins. We have essentially reached, as we move into Q3, normalization of our gross margins. I believe, over the last several quarters, we have seen the impact of crypto and what that can do to elevate our overall gross margins. We believe we’ve reached a normal period, as we’re looking forward to essentially no cryptocurrency as we move forward.

NVIDIA's updated guidance for the remainder of the year includes basically zero crypto demand.