Nvidia: GPU For Mining Are Not The Most Significant Direction
Representatives of the leading manufacturer of graphics chipsets Nvidia said that they will maintain a flexible approach to products for the cryptocurrency market and this segment is not the highest priority for the company.
Nvidia has published financial results for the third quarter of this year. It is noteworthy that the income from the sale of products used by many for the cryptocurrency was about $ 70 million, which is two times lower than the corresponding figure for the previous quarter ($ 150 million).
According to CFO Colette Kress, this is due to the considerable volatility of the cryptocurrency market. At the same time she stressed that the main niche of Nvidia's activity is the game industry.
CEO and co-founder of Nvidia, Huang Renxun, noted that there are other promising areas of the company's activities, such as drones and robotics.
"At some point we will see that the scope of the cryptocurrency will become small, but it will not disappear at all, remaining part of our business," he said.
The chart below shows the dynamics of the share price of NVIDIA Corporation:
Thus, the slowdown in the growth in revenue from video card sales for mining as a whole did not negatively affect the Nvidia share price.
As noted on the company's website, according to the results of the three-month reporting period, which ended on October 29, 2017, Nvidia's revenue reached $ 2.64 billion, an increase of 31.5% compared to the same period last year. Net income increased by 54.6% to $ 838 million ($ 1.33 per share of the company).
Previously, Thomson Reuters analysts forecast sales and profits of Nvidia at $ 2.36 billion and 94 cents per security, respectively. Thus, the company's financial results exceeded expectations.
One of the main drivers of Nvidia's financial performance growth was data center solutions, the implementation of which doubled year-on-year and exceeded $ 501 million. Earlier analysts forecast revenue from these products in the amount of $ 474.2 million.
The volume of gaming business Nvidia increased by a quarter to $ 1.56 billion, which corresponds to approximately 60% of revenue. And here analysts had expected a lower figure - $ 1.31 billion.
In the automotive business of Nvidia recorded revenue growth of 13.3% to $ 144 million.
Recall, in the second quarter has marked by a significant increase in revenue and a doubling profits for Nvidia.