Nvidia on Wednesday predicted better-than-expected first-quarter revenue, and its flagship gaming chip is expected to maintain tight supply in the coming months.

As people wait for the COVID-19 vaccine to be launched around the world, ordering around the clock has created a high demand for chips that speed up video games. However, the gaming chips of the Santa Clara, California-based company have also regained popularity due to cryptocurrency mining. This is a trend that Nvidia is trying to fight back by offering special mining chips to release gamers’ graphics chips during the global chip shortage. supply.

Although Nvidia has always been known for its gaming graphics chips, it actively promotes artificial intelligence chips to handle tasks such as voice and image recognition in data centers, making it the semiconductor manufacturer with the highest market value.

It has surpassed competitors Intel and advanced micro equipment companies.

After the results were announced, Nvidia’s stock rose 3% in extended trading to $597.50 (approximately Rs 43,230).

In a conference call with investors, Chief Financial Officer Colette Kress said that the global chip crunch made it difficult for the company’s flagship gaming chip launched last fall to maintain inventory, and that the chip may be in the first fiscal quarter. Will still be in short supply.

Kress said analysts estimate that cryptocurrency mining contributed between US$100 million (approximately 7.2 billion rupees) to US$300 million (approximately 21.7 billion rupees) to Nvidia’s sales in the fourth quarter. Kress added that the company expects the new mining chips to generate approximately US$50 million (approximately Rs 3.6 billion) in revenue in its first fiscal quarter.

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In order to prevent miners from using gaming chips, Nvidia will start selling software with gaming chips, which will slow down their ability to mine certain currencies, and then release mining-specific chips separately. Nvidia CEO Jensen Huang told Reuters that mining chips do not require gaming functions such as display output, which means that chips that are not suitable for gaming can be used for mining.

Huang said of the miners: “The way chips are used, they don’t need a bunch of functions.”

The company expects revenue of US$5.3 billion (approximately Rs 38,360 crore) in the first quarter, up or down 2%, higher than the average analyst estimate of US$4.51 billion (approximately Rs 32,640 crore).

Revenue for the quarter ended January 31 increased from US$3.11 billion (approximately Rs 22.5 billion) in the same period last year to US$5 billion (approximately Rs 36.190 billion). According to Refinitiv’s IBES data, analysts expect an average of 4.82 billion U.S. dollars (about 34.89 billion rupees).

According to data from FactSet, the company’s gaming division’s revenue was US$2.5 billion (approximately 181 billion rupees), higher than analysts’ estimate of US$2.36 billion (approximately 170.9 billion rupees). According to data from FactSet, data center revenue was US$1.9 billion (approximately 13.76 billion rupees), higher than the estimated US$1.84 billion (approximately 13.32 billion rupees).

Thomson Reuters 2021 ©


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