HomeTechnologyTech newsNvidia grossed $ 5 billion during video card shortages

Nvidia grossed $ 5 billion during video card shortages

This week, Nvidia released the financial results for its fourth fiscal quarter, ended January 31, 2021. The report indicates that, in the period, the company recorded revenue of $ 5 billion. This is a record for the company that was achieved, in part, thanks to the high demand for video cards in recent months.

The $ 5 billion represents an increase of 61% in comparison with the same period of the previous year, when Nvidia had revenues of $ 3.1 billion.

The amount exceeded the forecast of market analysts, who were already quite optimistic: they expected revenues of US $ 4.82 billion in the last fiscal quarter.

Net income in the last quarter was US $ 1.46 billion.

GeForce RTX 3000 video cards contributed substantially to these numbers. Since they were announced, the demand for them has been so great that Nvidia has been struggling to meet all demand.

In addition to video cards for games, Nvidia works with solutions for datacenters, virtualization and automotive technology, for example. The first category alone accounted for half of the registered revenue, that is, for US $ 2.5 billion. The data center segment raised US $ 1.9 billion.

Jensen Huang, founder and CEO of Nvidia, celebrates:

Our pioneering work helped make games the most popular form of entertainment in the world; we democratized supercomputing and AI for all researchers; and the demand for the GeForce RTX 30 Series was incredible. Nvidia RTX began a major cycle of improvements for gamers to access technologies like Ray Tracing, DLSS and IA.

Jensen Huang, CEO of Nvidia

The video card market is heated not only because of the demand for GPUs by players, but also due to the search for units for cryptocurrency mining, mainly Ethereum.

GeForce RTX series graphics card (image: disclosure / Nvidia)

As if to reassure the market, Colette Kress, Nvidia’s chief financial officer, explained in a videoconference that cryptocurrency mining contributed between $ 100 million and $ 300 million to Nvidia’s revenue, a relatively small proportion if we consider the total .

Despite this, Nvidia recently promised to create a driver for the GeForce RTX 3060 card that will make it 50% less efficient in mining Ethereum. The expectation is that, with this measure, players will find it easier to buy the model, preferably with a value equal to or close to that suggested by Nvidia (US $ 329).

In any case, there is nothing to indicate that the video card market will be more “quiet” in the short term.

Related news