Graphics card maker Nvidia generated $ 155 million in revenue from chips designed for cryptocurrency mining during the first financial quarter. The company acknowledged that crypto miners had also increased sales in the gaming product segment which remained its main market.
Leading GPU manufacturer reports record high video card sales supported by crypto miners
Announce its first fiscal year 2022 result, Nvidia revealed that its total revenue grew 84% in the first quarter ended May 2. The record-high $ 5.66 billion figure, which exceeded initial expectations, comes from the company’s gaming, data center and professional visualization platforms. The development of AI applications played a major role, along with the increasing demand for graphics processing units (GPUs) during the epidemic, but the crypto markets have gained momentum.
While a total of $ 155 million has been attributed to crypto-specific chips, Nvidia also acknowledged that cryptocurrency miners boosted sales in its large gaming card segment, Reuters reported that the company did not disclose its share. Nvidia expects to purchase its CMP chips, specifically for professional crypto mining, to reach $ 400 million in the second quarter.
As cryptocurrency prices reached their highest levels earlier this year, Nvidia launched dedicated mining chips to divert the demand for miners from its most important product line. This also Limited Mining efficiency of your regular graphics card to protect supplies for gamers. Nvidia CEO Jensen Huang was quoted by CNBC as saying:
We hope that the CMP will satisfy the miners and remain in the professional mines.
On Wednesday, the company also said its first-quarter gaming revenue reached $ 2.76 billion, a 106% increase from a year earlier, while data center revenue grew 79% to $ 2.05 billion.
Nvidia struggles to determine miners’ contribution to the ‘bigger than ever’ gaming market
Despite positive news, Nvidia shares fell 1% to $ 621.95, according to data provided by Reuters. The report implies that investors may have been deterred by an increase in card purchases for crypto mining, usually when the value of cryptocurrency rises. However, in the past days and weeks, crypto markets have been affected by a series of negative statements and have moved forward public figures And Governments Which has brought down prices across the board.
To reduce the impact of volatile crypto demand on investor sentiment, and to address complaints by gamers over the lack of the popular Geforce RTX 30-Series card, Nvidia aimed to make its GPU less suitable for crypto mining. And technology is used- CMP chips made separately. “It effectively increases our production and supply,” Jensen Huang said, commenting on the changes.
The chief executive also commented that the gaming market is now larger than ever and stressed that the growth trend will continue. Although crypto miners have clearly affected the financial results of Nvidia’s core business, even after the chips were tweaked, CFO Colette Cress has been quoted as saying that the company is still difficult to determine He has contributed to his gaming division.
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