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In the first fiscal quarter, graphics card manufacturer Nvidia received $155 million in revenue from chips used for cryptocurrency mining. The company acknowledged that crypto miners also contributed to sales growth in the gaming product sector, which is still its main market.
Nvidia announced its first performance for the 2022 fiscal year, and its total revenue for the first quarter ended May 2 increased by 84%. The record-breaking $5.66 billion figure exceeded initial expectations, coming from the company’s games, data centers, and professional visualization platforms. During the pandemic, the surge in demand for graphics processing units (GPUs) and the growth of AI applications played an important role, but so did the booming crypto market.
According to Reuters, although the total value of $155 million is attributed to encryption-specific chips, Nvidia also acknowledged that cryptocurrency miners have increased sales in its larger gaming card sector, noting that the company did not disclose its share. Nvidia expects that the purchase of CMP chips purchased in the second quarter will reach 400 million U.S. dollars. The CMP chips are specifically designed for professional cryptocurrency mining.
As the price of cryptocurrency reached a record high at the beginning of this year, Nvidia launched a dedicated mining chip to divert the needs of miners from its most important product line. It also limits the mining efficiency of its conventional graphics cards to protect the supply of gamers. CNBC quoted Nvidia CEO Huang Renxun as saying:
We hope that CMP can meet the needs of miners and will stay in professional mines.
On Wednesday, the company also stated that its gaming revenue in the first quarter reached US$2.76 billion, an increase of 106% over the same period last year, while its data center revenue increased by 79% to US$2.05 billion.
Data provided by Reuters showed that, despite the good news, Nvidia’s stock price fell 1% to $621.95. The report suggests that investors may be delayed due to the surge in card purchases for crypto mining that usually occurs when the value of cryptocurrencies rises. However, in the past few days and weeks, the cryptocurrency market has been hit by a series of negative comments, and the actions of public figures and the government have also caused prices to fall across the board.
In order to reduce the impact of volatility in cryptocurrency demand on investor sentiment, and to address gamers’ complaints about the shortage of popular Geforce RTX 30 series graphics cards, Nvidia uses software and technology to make its GPUs unsuitable for cryptocurrency mining, and provides The following purpose: to manufacture CMP chips separately. “This has effectively increased our production and supply,” Huang Renxun commented on these changes.
The CEO also pointed out that the gaming market is now bigger than ever, and emphasized that the growth trend will continue. Although cryptocurrency miners have clearly affected the financial performance of Nvidia’s core business, even after the chip adjustments, CFO Colette Kress was quoted as saying that the company still found it “difficult to determine their contribution to the gaming sector. degree”.
What do you think of Nvidia’s latest revenue data? Let us know in the comments section below.
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