Nvidia, world-scale manufacturer of video cards, reported a "substantial decline" in sales of mining equipment due to a decreased demand from miners.

Commenting on the company's financial results for the second quarter of 2018, Nvidia CFO Colette Kress noted that although GPU sales amounted to $2.66 billion for the reporting period, which is 40% more than a year earlier, it is still a 4% decline compared with the previous quarter. Nvidia claimed it had earned only $18 million from mining GPU sales, while it forecasted that sales will decline to only $100 million.

"Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million. Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward."

At the same time, she noted a significant increase in demand for products for gamers and data centers, which overlagged the drop in sales of GPU for crypto mining.

In March, Nvidia CEO Jensen Huang said that the company needed to increase production of graphics cards to meet the demand of both miners and gamers.

Earlier, another GOU manufacturer, AMD, reported, that computing and graphics segment revenue fell 3% quarter-over-quarter to $1.09 billion, which decline was primarily related to lower revenue from GPU products in the "blockchain market."

In June, it was already known that video card manufacturers are preparing to reducing demand from miners. According to the June report by DigiTimes, Nvidia and AMD video cards expected reduction in supplies and profits from the sale of GPU equipment in the second half of 2018. Because of increased pressure of world regulators on the cryptocurrency market and price drop of the whole crypto market, many individual miners and small mining farms left the market.