The US company best known for chips that enhance video game graphics has diversified into an array of businesses including artificial intelligence, self-driving cars and digital mining, but investors are most concerned with its inroads in the market for cloud computing.
The big victor is also the datacenter department, which reported a revenue of United States $707 million, up by 16 percent compared to the last quarter and up by 71 percent compared to the previous year.
Nvidia shares declined around 4% after the results were announced earnings were announced. This is up 33 percent from a year ago. That would undoubtedly spur a broad refresh cycle, but for now, Nvidia hasn't made any new announcements. Nvidia says these cards accounted for $298 million of the OEM and IP segment revenue, marking the company's first public comments on its crypto-derived revenue. While retail prices surged earlier this year, the cryptocurrency ecosystem's recent correction saw various miners lose interest and sell their rigs.
Investors shouldn't obsess about the crypto business, Rosenblatt Securities analyst Hans Mosesmann said.More news: The Players Championship: Phil Mickelson praises Tiger Woods' past form as 'unrepeatable'
Nvidia just reported record quarterly revenue of $3.21 billion for the three-month period that ended March 31.
The top GPU manufacturer saw it gaming revenue grow 68 per cent from a year earlier to $1.72 billion for the first quarter.
"Crypto miners bought a lot of our GPUs in the quarter and it drove prices up", Nvidia Chief Executive Officer Jensen Huang said on a conference call. "Gamers who had been priced out of the market last quarter" were able to get their hands on new chips a reasonable price, she said.
A cryptocurrency boom has powered growth at Nvidia and rival Advanced Micro Devices, but the sector is battling volatility caused by swings in the currency's value.
Earnings in this space are up 71 per cent year-over-year to a record $701 million. But CEO Huang remained optimistic. The company added, however, that it expects the figure to be much smaller in the next quarter. However, it has been mining's pull on the same resources as Nvidia's core business, its $1.7bn+ games-related product range, that has made headlines.