Nvidia, the world biggest GPU Manufacturer had posted earnings for the first quarter and reported revenue in the amount of 3.21 Billion USD, which was more than the estimates of 2.89 Billion USD. A record valuation and increasingly bullish predictions from Wall Street have made Nvidia Corp.’s earnings report on Thursday one of the most anticipated of the season.
According to the report, the company made 289 Million USD — 9% of their total revenue — from sales to cryptocurrency miners. Nvidia expected to make $200 Million through cryptocurrency sales but made nearly 50% more. Their crypto sales have outperformed their expectations, according to CNN.com
While much of the focus is on the data center business, most of Nvidia’s revenue comes from its gaming division, which sells graphics processors typically used in personal computers. In the fourth quarter, gaming represented 60 percent of revenue. Also included in this segment are cryptocurrency-related sales, which have gotten increasing attention as prices for digital coins have surged in the last several years, according to Bloomberg.com
Jensen Huang, the CEO of Nvidia, explained:
“The reason why they bought [GPU cards] is for gaming, but while they are not gaming; while they are at school, at work, or in bed — they will turn it on and do a little mining. There’s nothing wrong with that.”
In the future, we can expect a growth in the miner’s branch, if crypto-value is worth to mine. In only this case Nvidia would produce bigger and bigger revenues. There is still interest of miners to mine, because it is profitable. That could be the main reason of Nvidia earnings, because of a lot of miners. But if price of crypto goes down, their earning will not be as good as expected, because mining would not be profitable anymore.