Crypto Mining Sales Exceeded Nvidia’s Expectations In Q4

Announcements, News | February 12, 2018 By:

Graphics card maker Nvidia has reported soaring profits for the fourth quarter of 2017. The company said it banked $2.91 billion in revenue during that period, up 34 percent from $2.17 billion a year earlier.

Nvidia cited “strong growth” for its Pascal-based GeForce gaming GPUs that was driven by “new games, holiday-season demand, iCafe upgrades, e-sports and cryptocurrency mining.”

Nvidia Chief Financial Officer Colette Kress said that strong demand in the cryptocurrency market exceeded their expectations. He added that while the overall contribution of cryptocurrency to their business remains difficult to quantify, they believe it was a higher percentage of revenue than the prior quarter.

RBC Capital Markets analyst Mitch Steves estimated that Nvidia’s cryptocurrency revenue rose to about $180 million from $70 million last quarter. BMO Capital Markets’s Ambrish Srivastava said that overall crypto-related business contributed more than $230 million in the fourth quarter.

Kress also stated that the company’s main focus remains on its core gaming market, as cryptocurrency trends will likely remain volatile.

The demand on mining GPUs was caused by the recent boom of ethereum mining profitability. As a result, it has created a global shortage of high-end graphics cards from Nvidia and AMD, driving up prices for retail gamers/buyers.

“We’re working really hard to get GPUs out into the marketplace for the gamers,” said Nvidia chief executive Jen-Hsun Huang. “We’re doing everything we can, but I think the most important thing is, we just got to catch up with supply.”

Last month, the graphics card maker recommended that retailers prioritize gamers over miners. Nvidia spokesman Boris Böhles said that to ensure GeForce-Gamers continuously have access to GeForce-graphic cards, they recommend Nvidia’s trading partners to take according measures to ensure they can provide for the needs of gamers, per usual.