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Graphics card manufacturer Nvidia has announced its revenues for the first quarter, mentioning separately the amount generated from sales to the crypto market. The total includes $289 million related to GPUs for cryptocurrency mining, according to a corporate report. Demand from crypto miners was stronger than expected, the company noted.
Crypto Miners Bought a Lot of GPUs, Nvidia CEO
Reporting its financial results from a strong first quarter, Nvidia Corp. has revealed, in a separate box, the amount it generated from sales to the crypto sector – $289 million. According to the company’s CFO Commentary on Q1 Fiscal Results, the total revenue increased 66 percent year-over-year, and 10 percent sequentially, to a record $3.21 billion. All platforms – Gaming, Professional Visualization, Datacenter, and Automotive – have produced growth, the company said.
“GPU business revenue was $2.77 billion, up 77 percent from a year earlier and up 12 percent sequentially, led by Gaming and Datacenter,” the leading video card manufacturer announced. Gaming revenue was up 68 percent from a year ago and down 1 percent sequentially. Datacenter revenue exceeded $700 million, up 71 percent from a year ago and up 16 percent sequentially, Nvidia detailed.
“OEM [original equipment manufacturer] sales included $289 million related to GPUs for cryptocurrency mining,” the company pointed out, revealing reportedly for the first time the revenues from its sales to the crypto market.
Demand from cryptocurrency miners in the first quarter was stronger than expected, Nvidia admitted Thursday on its earnings conference call, according to Bloomberg. Nvidia CEO Jensen Huang said:
Crypto miners bought a lot of our GPUs in the quarter and it drove prices up. I think that a lot of gamers weren’t able to buy into the new Geforce as a result.
However, the company expects sales in the sector to fall by about two-thirds in the current quarter.
GPU Manufacturers Benefit from the “New Form of Computing”
Earlier this year Jensen Huang predicted that despite regulatory pressures, the popularity of cryptocurrencies will grow in the next few years. The chief executive of Nvidia said that cryptocurrency, or the “ability for the world to have a very low-friction, low-cost way of exchanging value, is going to be here for a long time”.
In March, Huang told CNBC that cryptos and blockchain, “a fundamental new form of computing,” will be important drivers for the GPU market. He was also quoted as saying that Nvidia needs to increase its GPU production, admitting that the surging demand may be coming from the decentralized nature of cryptos. “There are supercomputers in the hands of almost everybody. No singular force or entity can control the currency,” he added.
Advanced Micro Devices, Nvidia’s main competitor, has also benefited from increased sales to crypto miners. According to a report by the analytical firm Jon Peddie Research, demand from the sector helped AMD reduce the gap between its results and those of Nvidia. In the last quarter of 2017, AMD’s share of the GPU market rose from 27.2% to 33.7%. The authors noted that its products remain cheaper, while offering practically the same productivity, when it comes to crypto mining.
In April, Advanced Micro Devices announced that its revenue for the first quarter amounted to $1.65 billion, with net income reaching $81 million. Again, the positive results were helped by continued demand for cryptocurrency mining hardware. “The first quarter was an outstanding start to 2018 with 40 percent year-over-year revenue growth,” said AMD president and CEO Dr. Lisa Su.
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