Nvidia recently shared their Q1 2021 financial report which highlighted that their revenue surged by 84 per cent YoY. As the prices for cryptocurrency spiked, Nvidia aims to launch new processors, especially for mining crypto. The processor can’t power a computer monitor, but it can generate valuable ether coins.
On Wednesday, the company shared an update that how its cryptocurrency, or CMP, cards are prospering in the market. The company recorded $155 million in revenue from CMP cards in its fiscal Q1, which ended 2 May, and the company is expecting that sales of $400 million in the current quarter — impressive numbers for a brand new product line according to a CNBC report.
Nvidia’s latest Cryptocurrency Mining Processor (CMP) lineup launched in February 2021, is supposed to convince cryptocurrency miners to lay off GeForce gaming graphics cards for crypto mining. This way Nvidia could have separate markets for the gamers and crypto miners and their new product line could suffice the need for both the markets as well.
Nvidia CEO Jensen Huang explained that the reason Nvidia is now paddling in crypto chips is to save the supply of graphics processing units, or GPUs, for gamers. While GPUs can be used for mining, the CMP chips can’t be used for gaming, and it’s easier for Nvidia to manufacture the CMP chips. According to Huang, the core gaming market is the largest it’s ever been, and it can’t risk missing out because crypto miners keep buying cards meant for gamers.
“The gaming industry is really large, and what’s really exciting on top of that, is that gaming is no longer just gaming. It’s infused into sports, esports. It’s infused into art. It’s infused into social and so gaming has such a large cultural impact now. It’s the largest form of entertainment and I think the experience we’re going through is going to last a while,” Huang mentioned.