Nvidia earns $155 million from crypto mining chips in fiscal Q1

   Graphics card maker Nvidia made $155 million in revenue from chips designed for cryptocurrency mining in its first fiscal quarter. The company acknowledges that cryptocurrency miners have also driven sales in the gaming product segment that remains its main market.

   Announcing its first 2022 financial results, Nvidia revealed its total revenue grew 84% in the first quarter ended May 2. The record-high $5.66 billion, exceeded the period. Initial expectations, coming from the company's gaming background, data center, and professional image. Rising demand for graphics processing units (GPUs) during the pandemic, along with the growth of AI applications have played a key role, but the booming cryptocurrency market has also played a major role. so.
   While $155 million of the total was attributed to crypto-specific chips, Nvidia also acknowledged that crypto miners drove sales in the larger gaming card segment. its market share, Reuters reports, noting that the company does not disclose their market share. Nvidia expects its purchase of CMP chips, made especially for professional cryptocurrency mining, to reach $400 million in the second quarter.
   When cryptocurrency prices hit an all-time high earlier this year, Nvidia rolled out specialized mining chips to divert miner demand away from its most important product line. It also limits the mining efficiency of its conventional graphics cards to protect the gamer's supply. Nvidia CEO Jensen Huang is quoted by CNBC as saying: "What we hope is that the CMPs will please the miners and will stay in the professional mines."
   On Wednesday, the company also said its first-quarter gaming revenue hit $2.76 billion, up 106% from a year ago, while data center revenue grew 79% to $2. .05 billion USD.
   Nvidia struggles to define miners' contribution to games market 'bigger than ever'
   According to data provided by Reuters, Nvidia stock lost 1% to $621.95. The report implied that investors may have been affected by the increase in token purchases for cryptocurrency mining that typically occurs as the value of the cryptocurrency increases. However, over the past days and weeks, the crypto market has been hit by a series of negative statements and moves by public and government figures that have driven down prices across the board.
   To reduce the impact of volatile crypto demand on investor sentiment and address gamers' complaints about shortages of popular Geforce RTX 30-series cards, Nvidia used software and technology to make its GPU less suitable for cryptocurrency mining while still providing the purpose- building a separate CMP chip. “It effectively increases our output and supply,” said Jensen Huang.
   The CEO also commented that the gaming market is now bigger than ever and emphasized that the growth trend will continue. While cryptocurrency miners have clearly affected the financial results of Nvidia's core business, even after the chips have been tweaked, CFO Colette Kress has been quoted as saying that The company still finds it “difficult to determine how much” they have contributed to its games division.