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Nvidia this week released its results for the third fiscal quarter of 2021, posting better-than-expected results, driven by sales of its graphics processing unit (GPU) chips. The company reported graphics segment revenue of $ 2.79 billion for the quarter, beating analysts’ estimates of $ 2.1 billion.
In the graphics segment also falls the division of games. Nvidia said its new line of graphics cards based on a new technology called Ampere has sparked great interest among developers of computer and video game consoles. For example, one of the new models, the Geforce RTX 3080, went on sale in September and sold out immediately.
Nvidia said gaming revenue climbed 37% year-on-year to $ 2.27 billion, a record for the company.
Graphics processing units produced by Nvidia are mainly used in video game consoles and graphics cards, but they have also become popular with cryptocurrency miners, especially those who mine coins like ethereum (ETH), monero (XMR) and zcash (ZEC).
For the quarter under review, Nvidia sold at least $ 175 million of next-generation GPUs to Ethereum miners, contributing to the outperformance, according to a note from RBC Capital Markets analyst Mitch Steves. The analyst had guided sales to miners to hit $ 150 million for the quarter.
Steves noted that the next upgrade to the Ethereum blockchain network, also known as Ethereum 2.0, which is slated to take place in December, requires miners to switch to more efficient mining hardware. Nvidia’s new Ampere GPU chips are said to meet this need.
However, GPUs are no longer efficient for bitcoin mining (BTC), which has moved to more efficient application-specific integrated circuit (ASIC) miners.
Overall, Nvidia reported revenue of $ 4.73 billion for the quarter, up 57% from the previous year. Analysts were forecasting revenues of $ 4.41 billion. The company revealed that it continued to face bottlenecks for its chips and cards during the fiscal fourth quarter, which ends in January.
He also said its acquisition of UK chip designer ARM from Japanese conglomerate Softbank is expected to be finalized by the first quarter of 2022.
Nvidia’s shares fell 0.92% to $ 532.65 on the Nasdaq stock market on Friday. In the past 52 weeks, the stock has hit a high of $ 589.07 and a low of $ 180.68.
What do you think of Nvidia’s growing sales of graphics processing units to crypto miners? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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