Graphics chip maker Nvidia Corp was not too excited about the fact that it is receiving a lot of order from its cryptocurrency clients and not as much from the cloud computing ones. The company, which is primarily renowned for making chips for creating better graphic quality in video games said that it had pretty much solved the supply problem for its gaming audience which makes up for the bulk of its revenue.
Though the company has spread itself across other verticals as well such as digital mining, autonomous vehicles and AI, it’s the entry into the cloud computing market that is their priority at this point. The data centers which powers the leading cloud computing platforms like AWS, Azure and Google Cloud have clocked $701 million in revenue, a significant increase though estimates for the same were a little higher.
The revenue from crypto mining chips was at $289 million, almost 50% more than what was predicted, which led to a 3.3% decline in share prices due to higher dependence on this vertical. The company’s share price rose to a record high of $260.50 before that on the Philadelphia SOX. According to CEO Collete Kress, the revenue from this channel will drop to a third in the next quarter to about$100 million.
Due to miners taking up gaming chips, prices for the same rose unexpectedly and gamers were deprived of them due to this. The company countered this by making chips specifically for mining and the CEO expects more and more gamers to get their hands on reasonably priced gaming chips by the next quarter.
Amidst all this, the company gaming chip business is stronger than ever, raking in $1.72 billion, exceeding estimates. The net income more than doubled to $1.24 billion from the same quarter last year and the overall numbers also look promising with the company expecting even higher sales from gaming chips and are bullish on that front.