The world’s largest manufacturer of graphics processors Nvidia posted its revenue for the first quarter and reported revenue of $3.21 billion, more than the estimate of $2.89 billion. According to the report, the company generated $289 million – 9% of their total revenue – from sales to cryptocurrency miners.
It was expected that the income of Nvidia will be $200 million thanks to the miners, but it will be 50% more. Although their sales to the GPUs exceeded expectations, they expect that in the coming months it will decline. Since Ethereum, the most popular cryptocurrency mined on graphics processors, will be mining using Antminer E3, which will be released later this year. Thus, Bitmain will occupy a significant part of the market share.
In fact, last year Bitmain reported higher incomes than Nvidia, whose product line also includes components for cloud computing and AI. Nvidia reported a profit of $3 billion, while Bitmain produced nearly $4 billion, selling ASICs.
Although Nvidia may have had no revenue from Bitmain, they have made more sales of crypto hardware than their competing AMD. AMD reported that revenue in the first quarter was $1.65 billion, of which 10% was crypto sales, which indicates that they amounted to only $165 million. Like Nvidia, AMD also expects revenue from production to drop in the coming days.
Nvidia CEO Jensen Huang explained:
“The reason they bought (GPU cards) is for games, but they aren’t yet gaming; while they are in school, at work or in bed – they will turn it on and do a little mining. There is nothing wrong.”
When the demand for consumer graphics processors for crypto mining shot through the roof, Nvidia tried to control sales, suspended the supply of GPUs and eventually failed. In some markets, retailers sell these video cards twice their actual value due to demand. Nevertheless, the company seems to have accepted the miners and the forthcoming release of ASIC Miner from Bitmain and can finally release its supply restrictions.