Cryptocurrency News

Nvidia reported record earnings, claiming it was ‘difficult to determine’ the impact of crypto miners



Nvidia, the leading manufacturer of graphics processing units or GPUs, has announced record earnings for Q1 2021. However, the firm has downplayed the role of the crypto bull market in driving its impressive performance, mainly attributing demand for gamers to its products.

company Reported Despite a global shortage of semiconductors, overall sales grew by 84%, with impressive performance due to a period of sustained growth.

Both Nvidia’s sales and earnings exceeded expectations with Wall Street, reporting revenue of $ 5.66 billion and earnings of $ 3.28 per share by pundits and $ 3.66 per share after forecasting revenue of $ 5.41 billion.

Nvidia claims that the demand for the video game sector has more than doubled in the last 12 months, leading to a 106% annual increase in sales to $ 2.76 billion. CFO Colette Kress emphasized the growing demand for its consumer GeForce GPU from gamers and students.

Its graphics segment represented revenue of $ 3.45 billion, an increase of 81%. However, Nvidia estimates that demand for crypto miners represents only $ 155 million in sales.

The company recently took action to stop crypto miners from buying their GPUs by adding software earlier this year Limits hashing capabilities Its GTX RTX 3060 units.

While the firm noted that cryptocurrency miners had a positive impact on demand for GPUs, Nvidia determined that “it is difficult to determine the extent to which revenues in the region can be accounted for”.

Despite its impressive performance, Nvidia expects its recent supply problems to continue in the coming months, predicting that GPU supplies will be low during the second half of the year.

Nvidia’s chief executive, Jensen Huang, predicted that the firm’s upcoming CMP chips – specialized units dedicated to mining cryptocurrencies – would help mitigate the problem as Minor’s demand for its regular GPUs falls. He said:

“CMP gives better yields, and producing them does not take away from the supply of GeForce. So it protects the supply for players.”

Previous attempts to launch specialized mining hardware – particularly crypto SKU units – have nvidia hot water, with shareholders claiming that the firm misrepresented investors that crypto miners had during 2017 and 2018 Half of its GPUs were sold, resulting in inaccurate forecasts. Demand for GPUs from gamers amid crypto bear trend. Nvidia won the case in March Of this year.