Nvidia Corporation (NASDAQ: NVDA) said on its annual investor day that its increase in the first quarter’s revenue estimate for newly launched mining hardware is. At the same time, supply chain issues have overshadowed cryptocurrency-centric Canaan Inc’s (NASDAQ: CAN) V4 numbers.
What happened: Nvidia said it was revising its Q1 revenue estimate for its CMP product intended for industrial-scale cryptocurrency mining to $ 150 million, which is three times more than the $ 50 million previously expected.
“We are experiencing a broad force, with all of our market platforms moving upward toward our initial outlook,” said Colette Kress, NVIDIA CFO.
“Total demand remains very strong and continues to exceed supply, while our channel inventory is quite meager. “We expect demand to continue to exceed supply for much of this year,” said Kress.
On the other side of the coin, Canaan said the supply chain disruptions caused by COVID-19 affected its revenue in the fourth quarter of 2020.
“Due to supply chain disruptions as the price of Bitcoin rose at the end of 2020, we experienced an increase in demand for high quality mining machinery in and outside China,” said Tong He, Canaan’s chief financial officer.
Why it matters: Canaan said its revenue in Q4 2020 dropped to 38.2 million RMB ($ 5.9 million) from 463.2 million RMB ($ 70.72 million) a year ago and 163 million RMB ($ 24, 9 million) in the previous quarter.
The company in Hangzhou, China, said year-on-year and quarter-on-quarter declines “were mainly due to the decline in total computing power sold.”
“In the fourth quarter of 2020, although market demand increased significantly with the rise in the price of Bitcoin, the company did not have enough stock to deliver to its customers,” the company said in a statement.
Bitcoin (BTC) traded 0.78% higher at $ 60 323.33 at the time of printing, while Ethereum (ETH) traded 0.54% higher at $ 2,156.64.
See also: Bitcoin Mining Equipment Company Canaan sued by investors who are convinced of security rights
Meanwhile, Nvidia said that although the first quarter quarter of 2022 is not yet total revenue for the period, it is higher than the $ 5.3 billion outlook it provided during its year-end financial year.
In February, it was reported that Nvidia had raised between $ 100-300 million from Ethereum miners in the fourth quarter, despite a tight graphics processor.
Price action: Nvidia shares closed almost 5.6% higher at $ 608.36 in the ordinary session on Monday and fell 0.38% in the after-hours trading. On the same day, Canaan shares fell nearly 30% to $ 13.14 in the ordinary session and rose 1.14% to $ 13.29 in the post-trading session.
Read the following: Unlike Nvidia, AMD does not care if you use its gaming GPUs to mine Ethereum
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