[ad_1]
Nvidia released its earnings for fiscal third quarter 2021 this week, showing better-than-expected results, driven by sales of its graphics processing unit (GPU) chips. The firm reported graphics segment revenue of $ 2.79 billion for the quarter, beating analyst estimates of $ 2.1 billion.
Within the graphics segment, the games division also falls. Nvidia said its new line of graphics cards based on a new technology called Ampere attracted a lot of interest from computer and game console developers. For example, one of the new models, the Geforce RTX 3080, went on sale in September and sold out immediately.
Nvidia said that gaming revenue increased 37% year-over-year to $ 2.27 billion, a record for the company.
Graphics processing units produced by Nvidia are primarily used in video game consoles and graphics cards, but they have also become popular with cryptocurrency miners, particularly those mining currencies such as ethereum (ETH), monero (XMR), and zcash ( ZEC).
For the quarter under review, Nvidia sold at least $ 175 million worth of next-gen GPUs to ethereum miners, helping outperform, according to a note from RBC Capital Markets analyst Mitch Steves. The analyst had guided sales to miners to reach $ 150 million for the quarter.
Steves noted that the upcoming Ethereum blockchain network upgrade, also known as Ethereum 2.0, which is scheduled to take place sometime in December, calls for miners to switch to more efficient mining hardware. Nvidia’s new Ampere GPU chips are believed to fill that need.
However, GPUs are no longer effective for bitcoin (BTC) mining, which has moved to more efficient application-specific integrated circuit (ASIC) miners.
Overall, Nvidia reported revenue of $ 4.73 billion for the quarter, up 57% from the prior year. Analysts expected revenue of $ 4.41 billion. The company revealed that it continues to face bottlenecks in the supply of its chips and cards in the fourth fiscal 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.
Nvidia shares fell 0.92% to $ 532.65 in Nasdaq stock market trading on Friday. During the last 52 weeks, the stock reached a high of $ 589.07 and a low of $ 180.68.
What do you think about Nvidia’s growing sales of graphics processing units to crypto miners? Let us know in the comment section.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not an offer or direct solicitation of an offer to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author are responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
[ad_2]
