Nvidia has announced that it has seen very much improved results in the third fiscal quarter of the year after its earnings. The report shows that most of the firm’s revenues were accrued through the firm’s graphics processing unit chips’ sale.
According to the firm, the money realized from the graphics processing unit’s sales in the quarter was around $2.79 billion. Notably, the firm’s analyst previously predicted that the firm would realize about $2.1 billion from its sales graphics processing unit. A small part that made up the graphics segment is the gaming department.
Interest in recently released GPUs growing
According to Nvidia, most of the sales recorded in the department were due to the recently released graphic cards based on its new Ampere technology. The new set of gaming graphics cards’ release saw strong interest from computer and video game developers. A typical example was when the new Geforce RTX 3080 sold out completely after being released for sale in September. According to the company, their on-year revenue from gaming saw a surge of 37% to post around $2.27 billion, a new record for the company.
While most of the company’s customers have always bought the graphics processing unit for gaming and as graphics cards on laptops, miners in the crypto space have also joined the pool of customers. Ethereum, Monero, and Zcash are a few of the digital assets mined using the Nvidia graphics processing units. In its review of the quarter, Nvidia announced that it sold around $175 million worth of the recently released graphics processing units for miners in the Ethereum network. Notably, Mitch Steves, an analyst that works with RBC Capital Markets, already predicted something close to this figure.
Nvidia witness record sales of GPU to Ethereum miners
In his analysis, Steves noted that with the Ehereum network switching to a new 2.0 network, miners in the space would have to dump their previous miners and go for more efficient mining equipment like the recently released Ampere GPU. However, Bitcoin miners have left the GPU market and have switched to the ASIC markets to be more suited for their mining needs. In its overall financial statement, Nvidia announced revenue of $4.73 billion for the quarter, seeing an increase of 57% from the previous year.
However, the company has noted that it is continually facing issues regarding its chips and cards going into the fourth quarter. The company also said it expects to have acquired ARM, a British chip designer from Softbank, before the end of 2022. Nvidia’s shares in the Nasdaq stock exchange has seen a decline of 0.92% and currently sells at $532. In the past year, the stock has hit a high of $589 and a $180 low in the stock market.