Nvidia Corp has revealed how much income was generated from the company’s chip sales to the cryptocurrency market and expects that the amount will take a dip in the second quarter of the year.
According to reports from Bloomberg, the American graphics processing units (GPUs) producer declared that the demand from cryptocurrency miners in the first quarter was greater than anticipated and the revenue has translated into $289 million (when they had expected that it would be closer to $200 million USD) but the company expects that sales will fall by approximately two thirds in the current quarter.
Jensen Huang, Nvidia’s CEO, said that the company was able to succeed in owing to a higher demand for GPUs from the cryptocurrency miners which resulted in the higher prices and the boosted figures. He claimed that crypto miners “bought a lot of our GPUs in the quarter and it drove prices up” and also said that high the prices were an obstruction to the purchases of other consumers – for example, gamers – from investing in features such as the latest GeForce graphics card series – which might further skew the statistics.
The company’s report shows that Nvidia’s first-quarter sales for cryptocurrency are over 9% of total revenue which was an impressive $3.2 billion USD.
Other stats from the report from Bloomberg show that chips for cryptocurrency mining were a total of 76% of Original Equipment Manufacturer (components which are produced by one company and then marketed by another) income, which was an increase of 115% from the previous quarter. Although hash rates in cryptocurrency mining have continued to grow which signifies a continued increase in the global mining pool, there was a drop in revenue for everyone when cryptocurrency markets experienced a massive adjustment after December’s record highs.
Meanwhile, Nvidia’s largest competitor AMD published last month that they had also generated a high figure – 10% – of all sales from sales related to cryptocurrency and blockchain technology. Lisa Su, AMD’s CEO said that they think that they “have a very good idea of what people are using [their] products for. It’s a nice growth factor [blockchain or mining], but it’s certainly not the dominant growth factor in [their] story.”