NVIDIA: did you record record revenue in the last quarter, also thanks to mining?
NVIDIA
Despite the scarcity of video cards on the market, NVIDIA continues to record impressive numbers. In fact, the company recently released its financial results for the fourth quarter, during which it recorded an impressive new record of $ 5 billion in quarterly revenue, a 61% increase over the previous year and a net gain of 1,457. billions. NVIDIA grossed $ 16.7 billion over the past year, achieving $ 4.3 billion in net income and continuing to exceed estimates despite the current situation. Like most semiconductor manufacturers, NVIDIA has suffered from a number of notable shortages caused by a significant slowdown in the component supply chain induced by the ongoing pandemic. To make matters worse for gamers interested in purchasing a new graphics card, there was also the sudden reappearance of the massive phenomenon of cryptocurrency mining, in particular Ethereum.NVIDIA CFO Collete Kress explained that the company determined that its fourth quarter revenue was estimated to come from sales to miners in the range of $ 100 million to $ 300 million but admitted that he could not accurately take into account the impact of sales through partners and distributors. Both Kress and NVIDIA CEO Jensen Huang said the company does not expect the cryptocurrency mining phenomenon to end anytime soon due to increased acceptance of BitCoins by businesses and financial institutions, as well as continued mining trend. "Proof of work" '. These factors prompted the company to institute new measures that hamper Ethereum's mining performance on upcoming RTX 3060 graphics cards. NVIDIA also recently introduced its new line of CMP cards designed specifically for miners. The company expects to sell CMP cards worth approximately $ 50 million during the first quarter of the year, although this number does not include sales of other graphics cards later for mining.
Huang ha acknowledged that the company is currently limited on offer, but said he does not expect the GPU shortage to affect its supply to the important data center market. This implies that NVIDA is prioritizing manufacturing professional data center GPUs over those meant for gaming, which makes economic sense given the much higher margins in the market. Huang said he expects mining to continue to rely on "proof of work," which requires intense GPU computing power, and that the transition to "proof of stake" will take place gradually.
As we've seen in the past, a sudden drop in mining profitability could lead to a spate of graphics cards on the second-hand market, which could lead many people to stop buying new products, causing sales for NVIDIA to drop. Huang said that this time may not be the case, as he thinks that most miners will keep their graphics cards even if Ethereum's profitability drops temporarily, so that they can get them back to full capacity when profitability improves. >
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Nvidia slips as concerns over global chip shortage weigh on 4th-quarter earnings beat
© Mike Blake/Reuters Mike Blake/ReutersShares of chip maker Nvidia fell 3% in premarket trading on on Thursday as investors' concerns over the global chip shortage weighed on fiscal fourth-quarter earnings that beat expectations.
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Nvidia CEO Jensen Huang during the Wednesday earnings call said he expects the shortage to continue this 2021. But Huang assured investors that the shortage would not affect some segments.
The semiconductor industry in the past year has been struggling to meet global demand, thanks to an unexpected boom in online activity brought about by the pandemic. Nvidia, which outsources from Asia, Taiwan Semiconductor Manufacturing and Samsung Electronics, in particular, is stuck in the middle. Both Asian companies are having difficulty keeping pace with demand, and the bottleneck has trickled down to Nvidia.
Nvidia sells semiconductor parts for gaming, artificial intelligence, data centers, and automobiles, among other sectors.
The company reported that revenue jumped 61% to $5 billion for the quarter ending January 31 and adjusted earnings of $3.10 per share, both considerably higher than Wall Street's $4.82 billion and $2.81 per share estimates.
For the current fiscal first quarter, the chip maker set a forecast of $5.3 billion in revenue versus analysts' expectations of $4.49 billion.
For the coming year, the Santa Clara, California-based company remains bullish. Nvidia announced that it is working on graphic cards for mining cryptocurrencies like ethereum, even if the CEO said it will not be a huge part of its business.
Last year, Nvidia announced plans to buy Arm, Softbank's chip division, for $40 billion. Arm is not a chip maker, but licenses chip designs, widely used in mobile phones, to customers such as Apple, Samsung, and Intel.
