In February, America-based processing unit manufacturer, Nvidia released new processors specifically for mining crypto. However, the Q1 financial reports suggest that the PC gaming vertical has remained its biggest market despite a spike in cryptocurrency rates.
On Wednesday, the company released its financial reports for the first financial quarter which ended on May 2nd. The reports showed that the company earned $155 million in revenue from Crypto mining processing(CMP) cards.
However, Nvidia CEO, Jensen Huang says the new product line is not as exciting for the company. He says that the core gaming market has been the largest for the company and they can’t risk missing out because crypto miners keep buying cards meant for gamers. The company’s revenue from its core business was valued at $2.76 billion. It increased by 106% as compared to last year.
“The gaming industry is really large, and what’s really exciting on top of that is that gaming is no longer just gaming. It’s infused into sports, esports. It’s infused into art. It’s infused into social. And so gaming has such a large cultural impact now. It’s the largest form of entertainment, and I think the experience we’re going through is going to last a while,” Jensen said.
The company’s massive gaming revenue can be credited to its new GeForce RTX 30-series graphics cards. The retail price of these cards is $399 and scale up to $1,499, depending on the configuration.
However, the cards usually have limited supply and tremendous demand. They get out of stock quite quickly and when they’re out of stock, buyers are willing to pay hefty sums for it; sometimes even double of the retail price. The huge demand for Nvidia’s GeForce graphics cards is the reason why the company’s sales rose by 84% to $5.66 billion in the first quarter. The growth rate outgrew Wall Street’s as well as the company’s own expectations.
Amarylisa Gonsalves is a Content Writer at Gutshot Magazine. Advancing from a marketing background, she found her calling in writing. She takes delight in exploring genres and is a curious learner. Patient and ambivert, she believes in letting her work speak for itself. Apart from content writing, she finds solace in writing poetry by manifesting herself through words. Additionally, she adores indulging in drawing and DIY crafts.
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