Even after declining almost every week for the whole month of May, cryptocurrency prices still remain high, with bitcoin and ethereum still up 370% and 1,600%, respectively, since the beginning of 2020. Moreover, investor interest in the crypto market continues to be bullish despite the recent series of slumps.
Businesses in the real world are also being affected by the crypto sphere and NVIDIA is one of them. The company recently introduced to the market new hardware that was designed specifically for cryptocurrency mining and just a few months ago, sales started to skyrocket.
While the relative and extreme volatility of the crypto market caused some problems for NVIDIA in the past, it now has more visibility into how the nascent crypto market impacts it financially, all thanks to its previous experiences with the industry.
Making $400 million in profit
Last February 2021, NVIDIA announced the launch of a new chip lineup dubbed as the Cryptocurrency Mining Processor or simply, CMP. The latest product offering was off to a rousing start.
It conducted its first-quarter fiscal 2022 earnings call where Chief Finance Officer Colette Kress said CMP sales totaled $155 million. Experts say the figure is impressive, given the product has only been around for a couple of months.
Despite the setback in crypto prices, the company official claimed the same of the new chip lineup remains strong and in fact, they are predicting CMP revenue to reach $400 million until the fiscal second quarter that ends in July this year.
Just a small part
While $400 million sounds like a lot of contribution to the profit of NVIDIA, it is still just a small part of the $6.3 billion forecasted revenue of the company for the current quarter, representing just about 6% of sales.
While a notable contributor, the driving force for NVIDIA is not cryptocurrencies but gaming and data center sales, which accounted for 85% of the total for the company in the fiscal first quarter.
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