If you’ve been paying attention to Nvidia (NASDAQ: NVDA) recently, you might have seen the news that the company reported its first-quarter results as its sales have gone up 84% compared to this time last year. During the week of May 24th, Nvidia stock went up almost 7% to be worth around $650 a share at the time of this writing.
This news is very impressive considering the economic hardships 2020 brought in and the global shortage of semiconductors.
There are three major sectors that are boosting the demand for Nvidia’s GPUs: gaming, remote work, and, most recently, cryptocurrency mining with the company looking to the A.I. sector for the future. The company’s CFO Colette Kress reaffirmed this by pointing out people working and studying from home boost the need for laptops and gaming consoles with some having Nvidia chips like the Nintendo Switch.
For the second quarter of the 2022 fiscal year, Nvidia expects its revenue to be around $6.3 billion as its gaming and data center sector continues to grow.
As seen in the picture above, it’s going to be difficult finding Nvidia’s latest graphics card at a decent price because cryptocurrency miners use these GPUs to mine for cryptos much to everyone’s annoyance. Nvidia noticed this and decided to create Cryptocurrency Mining Processors or CMPs for short, and post an article about the new product on their official blog.
.@nvidia sold $155 million in cryptocurrency mining processors in Q1, resulting in sales growing 84% compared to last year.
— Bitcoin Magazine (@BitcoinMagazine) May 26, 2021
This new product has been a success as the company announced it managed to earn $155 million in revenue from these CMP cards in this first quarter and expects to earn $400 million in the second; although comments from Nvidia CEO Jensen Huang seem to indicate cards are an afterthought and a way for miners to “stay in the professional mines”.
Cash Flowing In
The future looks bright for Nvidia as the company’s stock grown over 1200% over the past five years as its graphics processors are starting to be used in other technology industries. The company’s GPUs now find themselves at the heart of the company’s newest endeavors of self-driving cars and cloud computing.
Those two sectors haven’t quite seen the level of success as their gaming division has as their automotive business went down 1% in the past year and generated only $154 million which is middling when taking into account that’s close to the same amount CMPs made in a few months.
What the Future has in Store
Speaking of which, in April of this year, Nvidia unveiled the NVIDIA DRIVE Atlan, a processor enabled by A.I. meant for the company’s self-driving vehicles and is aiming to release said cars in 2025. Nvidia also agreed to buy U.K.-based tech company Arms Holding for $40 billion and this is a big deal because more than 95% of the world’s smartphones run on CPUs made by Arms Holdings.
This deal has drawn the ire of various other tech corporations, the Federal Trade Commission, and even regulators in the United Kingdom.
If this deal goes through, it’ll be a game-changer for Nvidia.