Nvidia earned $289 million related to the sale of GPUs for cryptocurrency mining

By Shawn Knight · 10 replies
May 11, 2018
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  1. Nvidia in its recent earnings call revealed it generated $289 million in revenue related to the sale of GPUs for the purpose of cryptocurrency mining.

    While interest from cryptocurrency miners is good news for Nvidia’s bottom line, it wasn’t exactly welcomed by gamers. CEO Jensen Huang noted on the conference call that crypto miners bought a lot of their GPUs during the quarter and it drove prices up. As a result, many gamers weren’t able to get their hands on new GeForce cards.

    Nvidia announced earlier this week that its supply shortage had eased and GeForce GTX 10-Series GPUs were back in stock at MSRP. A quick check of Nvidia’s online store today shows that’s only partially true, however, as the only cards currently in stock are the GTX 1070 at $399 and the Titan Xp at $1,200. The GTX 1080 Ti, GTX 1080, GTX 1070 Ti and the GTX 1060 – all Founders Edition cards – are out of stock.

    Nvidia for the quarter reported record revenues of $3.21 billion, a 66 percent increase over the $1.94 billion it generated in the year-ago quarter and a 10 percent quarter-over-quarter gain. That resulted in GAAP earnings per diluted share of $1.98, up 151 percent year-over-year. Net income checked in at $1.24 billion.

    Huang described it as a strong quarter with growth across every platform but seemed most excited about AI.

    “At the heart of our opportunity is the incredible growth of computing demand of AI, just as traditional computing has slowed. The GPU computing approach we have pioneered is ideal for filling this vacuum. And our invention of the Tensor Core GPU has further enhanced our strong position to power the AI era,” he said.

    GPU sales to crypto miners are expected to fall by about two-thirds in the current quarter, Nvidia said.

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  2. wiyosaya

    wiyosaya TS Evangelist Posts: 2,747   +1,310

    No surprises here!
     
    senketsu likes this.
  3. TomSEA

    TomSEA TechSpot Chancellor Posts: 2,875   +1,108

    Actually, I'm surprised it wasn't more.
     
    Evernessince, pawel04 and H3llion like this.
  4. Theinsanegamer

    Theinsanegamer TS Evangelist Posts: 1,153   +1,176

    I would be, but then again the higher prices were not going to nvidia, they went to AIBs and retailers.

    Nvidia makes the same amount whether the chip goes for 1x or 3x MSRP, and the high prices were reflected by inadequate supply.
     
    JaredTheDragon, senketsu and ZackL04 like this.
  5. psycros

    psycros TS Evangelist Posts: 2,130   +1,643

    Exactly how does Nvidia know what its GPU chips are being used for? Is there something they would like to share with us, perhaps?
     
    regiq likes this.
  6. regiq

    regiq TS Booster Posts: 178   +57

    It's all in the ToS accepted with the installation of the driver :) But who reads that, right?
     
  7. Lounds

    Lounds TS Booster Posts: 84   +41

    How do you know this to be fact?
     
  8. Evernessince

    Evernessince TS Evangelist Posts: 2,788   +1,920

    Board partners, retailers, and scalpers are the one's who really made bank.
     
  9. HyPeroxya

    HyPeroxya TS Enthusiast Posts: 46

    Look out for their profitability ratio in their GPU div, if that is increased then NV are making $$$. Also if the average unit sale price is increased by any margin , that too is a good sign. And then look at their overall margins if they have increased markedly ??. Ohh and the new GPUs are going to be $100 and $50 more than the previous gen... because now you have been broken in, to the new reality.
     
  10. merikafyeah

    merikafyeah TS Booster Posts: 160   +97

    Yep. During the gold rush the guy who sold the shovels and pans made bank. HUGE bank. Everyone else? Not so much.
     
    p51d007 likes this.
  11. ShagnWagn

    ShagnWagn TS Maniac Posts: 292   +183

    The ONLY positive thing I can think about the miners - they are pumping much more money into the GPU money pot. This (hopefully) translates into more R&D and a jump in video card performance.
     

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