Nvidia reports record earnings, claiming it is “hard to determine” the impact crypto miners are having

Nvidia, a leading manufacturer of graphics processors or GPUs, has announced record results for the first quarter of 2021. However, the company has downplayed the role of the Crypto Bull market for its impressive performance, mostly attributing the demand for its products to the players.

The company posted an overall increase in sales of 84%, with impressive performance attributable to a period of sustained growth despite global semiconductor shortages.

Both Nvidia sales and earnings exceeded expectations on Wall Street, reporting $ 5.66 billion in sales and $ 3.66 per share in earnings, after experts posted a profit of $ 3.28 -Dollar per share and forecast revenue of $ 5.41 billion.

Nvidia claims video game demand more than doubled in the past 12 months, growing 106% annually to reach $ 2.76 billion in revenue. CFO Colette Kress emphasized the increasing demand from gamers and students for GeForce GPUs for end users.

The graphics segment had sales of $ 3.45 billion, an increase of 81%. However, Nvidia estimates that demand from crypto miners accounted for only $ 155 million of sales.

The company recently took steps to deter crypto miners from buying its GPUs earlier this year by adding software that would limit the hashing capabilities of its GTX RTX 3060 units.

While the company found that cryptocurrency miners had a positive impact on GPU demand, Nvidia found that it is difficult to determine how much revenue could be allocated to the sector.

Despite its impressive performance, Nvidia anticipates the recent supply problems will continue over the coming months and predicts that GPUs will be in short supply in the second half of the year.

Jensen Huang, CEO of Nvidia, predicted that the company’s upcoming CMP chips – specialized units for mining cryptocurrency – will solve the problem as miners’ demand for regular GPUs plummets. He said:

“CMP delivers better yields, and making these products does not affect the GeForce supply. This protects the supply of the players. “

Previous efforts to bring specialty mining hardware – especially the Crypto SKU units – to market have landed Nvidia in hot water. Shareholders alleged the company misrepresented investors that half of its GPU sales in 2017 and 2018 were to crypto miners, leading to inaccurate predictions of GPU demand from gamers amid the Crypto Bear trend. Nvidia won the case in March of this year.