It has been more than a decade since Nvidia has been ruling the graphics processing units (GPUs) industry. The leading manufacturer has been producing graphics processing units (GPUs) on a larger scale than any competitor.
Nvidia has been reporting that it is constantly observing growth in terms of its sales, generating huge revenues. The company has recently gone ahead and shared its earnings for the first quarter of 2021 on Wednesday, May 26, 2021.
Nvidia has reported that the sales it has generated for the recently completed quarter record highest. However, the GPU giant had recently made several changes and updates to their hardware ensuring that it downplayed the crypto market.
Nvidia had reportedly put a cap on the hashrate that the RTX 3070 and RTX 3080 could generate for cryptocurrency mining. The end result was that the cryptocurrency mining community was not happy with the latest update and criticized Nvidia for it.
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However, Nvidia did not leave its ground claiming that it had been producing GPUs primarily for the gaming community. Therefore, they wish to continue following their trend and keep producing units for the gaming sector and not for the mining one.
The company has revealed that the sales it has achieved in the first quarter of 2021 are significantly higher than their predictions. The sales figure it generated in Q1 2021 is even higher than what Wall Street had expected Nvidia to generate. The company has reportedly observed an 84% increase in its overall sales.
Nvidia officials have stated that it is one of the major milestones achieved by the company. The reason is that despite the shortage of semiconductors in the country, it has managed to generate such a high volume of sales. Nvidia is one of the companies that has overcome the shortage of semiconductors and has reported higher sales in the first quarter of 2021.
Nvidia has even surpassed the predictions made by Wall Street in terms of revenue and share prices. According to Wall Street, Nvidia was expected to generate $5.41 billion in revenue and observe a $3.28 share price per unit. However, Nvidia managed to generate $5.66 billion in revenue and observed its share price at $3.66 per unit.
Nvidia has claimed that the majority of the revenue it has generated is from GPU sales in the gaming sector. According to Nvidia’s stats, the company has observed that its demand from the video gaming sector has doubled in a matter of a year.
As a result, Nvidia has observed 106% annual growth in terms of sales, generating $2.76 billion. Colette Kress, the chief financial officer (CFO) claimed that they have observed a surge in demand from the students and the gamers sector for the GPUs.
Kress claimed that they have not observed any significant growth in demand or sales from the cryptocurrency mining sector. Therefore, they cannot tell if the crypto-mining sector is indeed the driving force behind the surge in sales or not.