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Nvidia shared its fourth quarter 2021 results, and while the company’s GPU supply is extremely low, that hasn’t seemed to hurt the money the company is making. In fact, it reported record revenue of $ 5 billion, a 61% year-over-year increase. What’s more impressive is that Nvidia expects to achieve an additional $ 5 billion in revenue in the first quarter of 2022.
This positive outlook is surprising given that the first quarter is typically slower than other quarters, even for the largest tech companies, as it follows the stampede of people buying a lot of product during the holiday season. This is generally a slower period in general for product releases in the tech and gaming areas. Let’s also not forget that the GPU shortage is still happening. Nvidia reiterated that the sparse supply will continue into the next quarter, but this is likely factored into its optimistic revenue forecast.
Nvidia says it expects the bulk of this estimated $ 5 billion first quarter 2022 revenue estimate to come from the gaming market, although this is the segment where it is currently most difficult. to serve. Since the launch of the RTX 30 series desktop graphics cards, leading with the RTX 3080, 3090, 3070, and followed by other products, Nvidia has been unable to keep up with the demand – although this is not the only company concerned. AMD has also struggled, perhaps more than Nvidia, to maintain a steady supply of graphics cards for retailers. My colleague Sean Hollister has received comments from both companies on the shortage. The ongoing pandemic has certainly played a role in that, and perhaps the shortage of semiconductor chips.
Nvidia recently announced that it is trying to allow gamers, not cryptocurrency miners, to get its RTX 3060 desktop graphics card which will be released tomorrow for $ 329. It does this by implementing GPU driver software that weakens its ability to farm Ethereum by half, in an effort to discourage crypto miners from buying it. It will also showcase its dedicated CMP mining processor in March, which Nvidia is making to serve the mining community in the hope that they will leave more gaming GPUs for gamers. Interestingly, Nvidia said during its call to investors that cryptocurrency-related sales make up a small portion of its total revenue – just $ 300 million out of $ 5 billion, suggesting that miners did not play a major role in the GPU shortage.
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