NVIDIA Couldn’t Evaluate Crypto Mining Impact as Q1 Profit Hits Record

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NVIDIA (NASDAQ: NVDA), one of the largest chip manufacturers, reported that it ended the first quarter of 2021 with a revenue of $5.66 billion, which is 84 percent higher year-over-year and a 13 percent rise quarter-over-quarter.

The earnings of the company remained at $3.66 per share, beating the street estimation of $3.28 per share. In absolute terms, the net non-GAAP income came in at $2.31 billion that is 107 percent higher than the figure posted for the same quarter a year before.

The chip manufacturer’s demand skyrocketed with the rise in cryptocurrency mining, but the company could not evaluate the exact rise in its recent revenue due to the crypto market volatility.

In Wednesday’s announcement, the company highlighted that the record quarterly revenue was the result of its gaming, data center and professional visualization platforms.

“We had a fantastic quarter, with strong demand for our products driving record revenue,” NVIDIA Founder and CEO, Jensen Huang, said in a statement.

NVIDIA’s graphics cards are widely used in mining some of the major cryptocurrencies like Ethereum. In addition, the company differentiated its product lines to introduce crypto-specific chipsets.

In Q1 of 2021, the California-headquartered company generated $155 million from the sale of those crypto-specific chips and is expecting to bring $400 million in the second quarter. However, the lack of volatility-specific data upsets investors.

Additionally, NVIDIA is in the process of acquiring British chip technology firm, Arm, a deal that is expected to be closed by March 2022 for $40 billion. However, it is facing scrutiny from the regulators in the US and the UK.

Meanwhile, the expectations of the company are bullish for the ongoing quarter. It is expecting to generate $6.3 billion in revenue. The most probable boost in its business is coming from data centers that are threatening the existence of some major players.

“Our Data Center business continues to expand, as the world’s industries take up NVIDIA AI to process computer vision, conversational AI, natural language understanding and recommender systems,” Huang said.

(Photo: flickr)

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