Q4 takings up massively year-on-year, driven by demand by miners and data centre growth.
It’s been a good year for NVidia, with the company seeing a more-than-healthy boost in revenues, partly due to demand for its hardware by people looking to build mining rigs for currencies like Ethereum and Bitcoin.
The firm’s shares took a 10% leap on the back of a hike of nearly a third in its takings compared to last year’s Q4 – and a 10% leap from Q3.
In her commentary on the results, the company’s Chief Financial Office, Colette Kress, summarised that “Strong growth across our Pascal-based GeForce gaming GPUs was driven by new games, holiday-season demand, iCafe upgrades, eSports and cryptocurrency mining.”
During a later conference call, she elaborated on this by saying “Strong demand in the cryptocurrency market exceeded our expectations,” adding that “while the overall contribution of cryptocurrency to our business remains difficult to quantify, we believe it was a higher percentage of revenue than the prior quarter.”
While this reflects the fact that it’s hard to exactly determine what someone wants with one of its products when they buy through retail, the company did comment that inventory levels of its GPUs were lower than it was used to during similar revenue periods due to demand from cryptocurrency miners.
Grahical Processing Units, such as those which NVidia specialise in for PCs and consumer electronics – it makes the chips for Nintendo’s Switch console, for example – are suited to the process of mining cryptocurrency because graphical tasks involve the same repetitive, mathematically intense tasks as that process. The rise in their use for this purpose has led many to the conclusion that the price of such hardware is being forced up to temper demand.