Demand for mining equipment exceeded expectations for Nvidia in the fourth quarter

Demand for mining equipment exceeded expectations for Nvidia in the fourth quarter

Bitcoin and cryptocurrency mining has provided a consistent and growing market for hardware manufacturers. The main player on the graphics card side in 2017 was Nvidia, but even they did not anticipate demand for miners at the end of the year.

Mining has brought them great gains

The Nvidia corporation (listed as NVDA on NASDAQ) is one of the leading video card manufacturers. In the fourth quarter (ending January 28, 2018), Nvidia reported record revenues of 2.91 billion, 34% more than last year.

Performance is due, at least in part, to the demand from crypto miners who buy wholesale graphics cards.

We have had a record quarter again and we have completed an excellent year,” said Jensen Huang, founder and chief executive of Nvidia. “As a sign of progress, participants in the technology conference organized by Nvidia reached 22,000 participants, ten times more than five years ago. Developers work on Artificial Intelligence, self-driving machines and a wide range of other areas that continue to uncover the benefits of our

More than $ 230 million in mining revenue

Demand for mining equipment exceeded all expectations for Nvidia in the fourth quarter, which is confirmed by company director, Colette Kress. “It’s hard to measure the contribution of cryptocurrency to our business. We believe, however, that it was a higher percentage than in the previous quarter. That being said, our main target is the gaming market, because cryptocurrency trends remain volatile

Analysts estimate the impact was hundreds of millions. Mitch Steves of RBC Capital Markets said the revenue from the crypto mines amounts to 180 million dollars, compared to just 70 million in the previous quarter. Ambrish Srivastav of BMO Capital Markets estimated that the mining segment would be responsible for sales worth 230 million.

“I said the company must beat records and grow,” Srivastava wrote to clients. “Cryptocurrency most likely played an important role in the results.”

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