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Nvidia released its fiscal third quarter 2021 earnings this week, showing better-than-expected results, driven by sales of its graphics processing unit (GPU) chips. The company posted graphics segment revenue of $ 2.79 billion for the quarter, beating analyst estimates of $ 2.1 billion.
The gaming division also falls within the graphics segment. Nvidia said its new line of graphics cards based on a new technology called Ampere has sparked strong interest from computer and game console developers. For example, one of the new models, the Geforce RTX 3080, went on sale in September and immediately sold out.
Nvidia said gaming revenue was up 37% year-on-year to $ 2.27 billion, a record for the company.
Graphics processing units manufactured by Nvidia are mainly used in video game consoles and graphics cards, but have also become popular with cryptocurrency miners, particularly those mining coins such as Ethereum (ETH), Monero (XMR) and Zcash ( ZEC).
For the quarter under review, Nvidia sold at least $ 175 million worth of next-generation GPUs to Ethereum miners, helping outperformance, according to a note from RBC Capital Markets analyst Mitch Steves. The analyst had driven sales to miners at $ 150 million for the quarter.
Steves noted that the upcoming upgrade of the Ethereum blockchain network, also known as Ethereum 2.0, which is expected to take place in December, requires miners to switch to more efficient mining hardware. Nvidia’s new Ampere GPU chips are designed to meet this need.
However, GPUs are no longer effective for bitcoin (BTC) mining, which has moved on to more efficient application-specific integrated circuit (ASIC) miners.
Overall, Nvidia posted revenue of $ 4.73 billion for the quarter, up 57% from the previous year. Analysts had expected revenue of $ 4.41 billion. The company revealed it continues to face chip and card supply bottlenecks in its fiscal fourth quarter, which ends in January.
He also said that the acquisition of British chip designer ARM from Japanese conglomerate Softbank is expected to be completed by the first quarter of 2022.
Shares of Nvidia fell 0.92% on Friday to $ 532.65 on the Nasdaq stock market. Over the past 52 weeks, the stock has reached 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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