NVIDIA Reports Massive 106% Increase in “Gaming” Profits Due to Cryptocurrency Miners – Acts Coy Regarding Their Impact
29 May 2021
12NM 16nm 7nm AMPERE CMP CMP HX CRYPTO CRYPTOCURRENCY MINING FINANCIAL REPORT FISCAL YEAR FY21 FY22 GeForce gtx Nvidia pascal Q1 QUARTER REPORT rtx turing

Nvidia revealed its financial results for the first quarter of fiscal year 2022.

And god fucking blimey are these financial reports something else entirely, as the company has reported that it has achieved a 84% growth in year-over-year revenue reaching $5.66 Billion, with $2.76 Billion of that coming from their “Gaming” division or more rather the sales of GeForce graphics cards.

You’ve heard that right, NVIDIA has managed to generate $2.76 Billion in revenue from their gaming division seemingly during quite possibly the worst shortage when it comes to their production ever recorded, a 106% increase in profit year-over-year mind you.

And NVIDIA are strongly implying that the dramatic surge in cryptocurrency mining had absolutely nothing to do with this.

Because of course they would, given the fact that literally any company in this field have been dealing with shitty global supply constraints the fact that NVIDIA have managed to quite literally double the profits from its GeForce sales totally wouldn’t have been contributed due to the surge in demand for them (for cryptocurrency mining) or NVIDIA selling GPU’s directly to said miners, alongside the insane gouged prices that retailers impose on any GeForce hardware that actually lands in store.

Perhaps we may not need to talk about their hideous CMP HX cryptocurrency mining processors either, having already made bank by rebranding and reproducing age old trash such as a GTX 1660 Super with retailers charging upwards of over $700 USD for the privilege. Which according to the report has generated revenue figures of $155 Million

“What we hope is that the CMPs will satisfy the miners and will stay in the professional mines. CMP yields better, and producing those doesn’t take away from the supply of GeForce. So it protects supply for the gamers,” Nvidia CEO Jensen Huang said on a call with analysts.

 With CFO, Colette Kress commentating on their Q1 FY22 report:

“Gaming revenue was up 106 percent from a year ago and up 11 percent sequentially, reflecting higher sales
in GeForce GPUs, with both desktop and laptop setting records, as well as in game-console SOCs.”

“We continued to benefit from strong sales of our GeForce RTXTM 30 Series based on the NVIDIA Ampere
architecture. We believe Gaming also benefited from cryptocurrency mining demand, although it is hard to
determine to what extent.

Quite hard to determine to what extent the insane rush of Cryptocurrency has had a part to play in the overall demand and revenue for GeForce products that seemingly are not being produced in the same sort of numbers as previous generation hardware or certainly are not being sold into the homes of actual gamers who wish to buy them.

Because in comparison to their Q1 FY21 results, of which NVIDIA have managed to more than double recorded profits from its “gaming” GeForce segment. NVIDIA were then charging consumers absolutely fucking cancerous pricing for their RTX Turing graphics cards but in retrospect they would undoubtedly be cheaper in comparison to the sort of shit we find ourselves in today with RTX Ampere.

Now the sales of RTX Turing saw a massive uplift in profits in comparison to GTX Pascal graphics cards, this is mainly contributed to once again, those insane prices of which the fat man from Linus Media Group has demonstrated above.

RTX Turing graphics cards were built on the then exclusive “16/12nm” processing node in conjunction with NVIDIA while competitors sought to actually innovate with their more expensive 7nm process. Being built on effectively a tuned node from which GTX Pascal was tapped out on saw slight improvements across the board on the node front but realistically at that point NVIDIA were already laying the foundation to supersede Volta with necessary architectural changes that would then evolve into Turing and finally into its latest reincarnation of Ampere.

But aside from that NVIDIA were able to utilize TSMC’s 16/12nm to the fullest that even despite the insanely large dies that came with RTX 2000-series graphics cards they were able to produce them without any hitches, with favorable yields and of course much cheaper in comparison to the recently available 7nm processing node.

Though of course looking back on that today you’d probably imagine that Jensen Huang would regret making this sort of decision considering that AMD hold majority of the TSMC’s 7nm orders with NVIDIA only having a fractional slice of that pie for their A100 enterprise hardware.

But that aside NVIDIA were able to produce Turing for cheap, in large quantities and of course with the ungodly barbaric prices you see above. Needless to say they managed to sell less units than GTX Pascal graphics cards, yet somehow managed to completely thrash it when it came to recorded revenue from NVIDIA quarter after quarter.

Strange isn’t it?

“We had a fantastic quarter, with strong demand for our products driving record revenue,” said Jensen Huang, founder and CEO of NVIDIA.

With NVIDIA’s Data Center revenue for this quarter being $2.05 Billion which is up 79% percent year-over-year, with NVIDIA CEO, Jensen Huang throwing praise regarding their Mellanox acquisition which is entirely hilarious considering how NVIDIA have since shelved the revenue reports of Mellanox since acquiring it after just a single poor quarter.

“Mellanox, one year in, has exceeded our expectations and transformed NVIDIA into a data-center-scale computing company. We continue to make headway with our planned acquisition of Arm, which will accelerate innovation and growth for the Arm ecosystem. From gaming, cloud computing, AI, robotics, self-driving cars, to genomics and computational biology, NVIDIA continues to do impactful work to invent a better future,” said Jensen Huang.

NVIDIA have noted in their 10-Q filing regarding the future of cryptocurrency mining regarding the strong demand to mine with NVIDIA GeForce RTX products:

“Demand and use of GPUs for cryptocurrency has fluctuated in the past and is likely to continue to change quickly. Volatility in the cryptocurrency market, including changes in the prices of cryptocurrencies, can impact demand for our products and our ability to estimate demand for our products. Changes to cryptocurrency standards and processes including, but not limited to, the pending Ethereum 2.0 standard may also create increased aftermarket resales of our GPUs and may reduce demand for our new GPUs. During the first quarter of fiscal year 2022, we believe Gaming benefited from cryptocurrency mining demand, although it is hard to determine to what extent.”

It’s a pity really, by definition a boom of any kind will always come to an end however with constant delays of Ethereum going proof-of-stake has effectively contributed to the increase of demand for GeForce products and the cryptocurrency market as a whole will continue to maintain and or grow leading up to the long-awaited ETH 2.0 update.

It was also noted during NVIDIA’s 10-Q filing that they expect to remain supply-constrained leading well into the second half of their fiscal year.

We expect to remain supply-constrained into the second half of the fiscal year, primarily in gaming. We may
need to place non-cancellable inventory orders significantly in advance of our normal lead times, pay premiums or provide deposits to secure normal
and incremental future supply.

So, don’t get your hopes up for any GeForce graphics cards making their way to actual gamers anytime soon, even though the company plans to provide LHR or Lite Hash Rate updates throughout their RTX 3000-series lineup barring the RTX 3090.

The prices we’ve already seen the unannounced LHR RTX 3060 go for in South Korea certainly doesn’t get my hopes up. Because it would seem that these LHR graphics cards serve no purpose but to sell GPU’s at the same gouged prices but will only reach the systems of the gamers who are desperate enough to pay the premium for them.

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