Cryptocurrency and data centre drops hit Nvidia results
- Author: Kyle Warner May 12, 2018,
May 12, 2018, 12:57
AMD reported first-quarter revenue of $1.65 Billion out of which 10% was crypto sales, indicating they made only $165 Million. That was up 68 percent year-over-year from $1.03 billion. Nvidia also had an operating income of USA $1.295 billion, with net income of United States $1.244 billion, both up by staggering 134 percent and 145 percent, compared to the same quarter previous year.
Anyone vaguely interested in buying a graphics card for their PC over the last six months could have probably told you, the cryptocurrency mining sector's demand for processing power turned out to be significantly higher than Nvidia expected of late.
Given the strong earnings now rolling in, Nvidia's forecast for next quarter is looking positive.
According to Huang, NVIDIA's "datacenter business achieved another record and gaming remained strong". Not only is mining on the downturn, but new Ethereum-capable Bitmain ASICs also threaten to reduce demand for GPUs severely.
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Not only that, Nvidia also saw a huge bump in GPU sales and brought in $2.77 billion from GPU sales alone which is 77% up from a year ago.
Nvidia in March suspended self-driving tests across the globe, a week after an Uber Technologies autonomous vehicle struck and killed a 49-year-old woman crossing a street in Arizona. Susquehanna's Christopher Rolland anticipated crypto sales of about $200 million, according to an estimate before the earnings were released. "Gamers who had been priced out of the market last quarter" were able to get their hands on new chips a reasonable price, she said.
Yeah. Thanks for your question, Toshiya. And the reason for that is because, we want gamers to - the gaming experience of a graphics card depends so much on the GPU that is chosen. And so we chose to pull the plug because the distraction was unnecessary and we have too much good stuff to go do. That's 62 per cent up from last year's $1.03 billion. That is up 71 percent year-over-year to a record $701 million. That should accelerate as DGX-2 sales kick in. He notes that the biggest drivers for Nvidia are chips for data centers and artificial intelligence applications.
Finally, cryptocurrency was still a major factor for Nvidia. The crypto craze has slowed down, which has helped supply and demand stabilize for the first time in a year. NVIDIA generated more revenue from gaming than all of its other market segments combined.