NVIDIA (NASDAQ: NVDA), a major chip maker, announced that it closed the first quarter of 2021 with sales of $ 5.66 billion, up 84 percent year over year and up 13 percent corresponds to the previous quarter.
The company’s earnings remained at $ 3.66 per share, beating the street estimate of $ 3.28 per share. In absolute terms, non-GAAP net income was $ 2.31 billion, 107 percent higher than the prior year.
The chipmaker’s demand skyrocketed with the increase Cryptocurrency miningHowever, the company has been unable to assess the exact surge in its recent earnings due to the volatility of the crypto market.
In Wednesday’s announcement, the company highlighted that the record revenue for the quarter was due to its gaming, data center and professional visualization platforms.
“We had a fantastic quarter with strong demand for our products that resulted in record sales,” said Jensen Huang, NVIDIA founder and CEO, in a statement.
NVIDIA’s graphics cards are widely used to mine some of the major cryptocurrencies such as Ethereum. In addition, the company differentiated its product lines in order to introduce crypto-specific chipsets.
The California-based company generated $ 155 million from the sale of these crypto-specific chips in the first quarter of 2021 and expects to reach $ 400 million in the second quarter. However, the lack of volatility-specific data bothers investors.
In addition, NVIDIA is currently acquiring British chip technology company Arm, which is expected to close for $ 40 billion by March 2022. However, it is under scrutiny by regulators in the US and the UK.
Meanwhile, the company’s expectations for the current quarter are optimistic. It is expected to have sales of $ 6.3 billion. The most likely boost in its business comes from data centers threatening the very existence of some key players.
“Our data center business continues to grow as the world’s industries use NVIDIA AI to process computer vision, conversational AI, natural language understanding, and recommendation systems,” said Huang.