Nvidia sales are up 84% In the first quarter of 2021 as compared to the first quarter of last year. The company acknowledged the contribution of miners to the growth of the business.
Despite the global semiconductor shortage, Nvidia beats the Wall Streets forecast. According to CNBC, Nivida made revenue of $5.66 billion, whereas analysts expected revenue of $5.41 billion, and earnings per share, $3.66 per share versus expected $3.28 per share.
Sales of graphics processing units (GPUs) rose 81% to $3.45 billion. Gaming segment revenue grew 106%.
According to the company, over the past year, demand from the video game industry has more than doubled. In the gaming sector, revenues reached $2.76 billion.
Nvidia CFO Colette Kress said:
Gamers and students are behind the increased demand for GPUs, and that it is expected that the current upgrade cycle would continue to be strong through the rest of the year. Sales of its consumer GeForce graphics processors drove the increased revenue in its gaming division, in addition to chips it sells to game console makers.
Particular GPUs for cryptocurrency miners, introduced in March, brought Nvidia $ 155 million.
“Nvidia said Wednesday that it believed cryptocurrency miners were partially responsible for its increased revenue, but “it is hard to determine to what extent.”
The company indicated that in the long term, demand from the mining sector might decrease. It depends on the state of the market and changes in the standards and mechanisms of cryptocurrencies, including but not limited to the upcoming Ethereum 2.0 standard.
Recall that in February, Nvidia halved the hash rate of the desktop GeForce RTX 3060 video card to make the model less attractive for miners.
In March, the company decided to reduce the hash rate in three more graphics cards – Nvidia GeForce RTX 3080, 3070, and 3060 Ti.