PC hardware developer Nvidia continues to change the game, thanks to a demand for gaming and cryptocurrency.
The California-based chip maker reported a record $5.6 billion in revenue for the first quarter ending May 2, 2021, an 84% increase year-over-year. The earnings report beat Wall Street estimates of $5.41 billion.
With roughly 48% of the 2.8 billion gamers worldwide using a PC, Nvidia’s graphics processors continue to be in high demand as more people get into gaming for post-pandemic entertainment. Nvidia’s gaming business reported $2.5 billion in revenue for Q4.
For its fiscal Q1, the company’s gaming business reported record-breaking revenue of $2.76 billion, up 106% year-over-year.
The company aims to serve gamers, but Nvidia’s chips are also effective in performing artificial-intelligence calculations and mining cryptocurrencies.
- Last week, Nvidia announced it will apply a reduced Ethereum hash rate to newly manufactured GeForce RTX series products.
- The company hopes the move will make its products less desirable to miners and more accessible to gamers.
- Nvidia expects GeForce RTX products to reach their potential with the change.
The company also has momentum outside of hardware.
Launched in 2020, GeForce Now, the company’s $9.99-per-month cloud gaming service, reported over 10 million members worldwide and is approaching 1,000 games in its library.
Nvidia announced a four-for-one split of the company’s common stock in the form of a stock dividend last week. If approved by stockholders, the split will increase the number of authorized shares of common stock from 2 billion to 4 billion.