Nvidia shared its Q4 2021 earnings, and although the company’s GPUs were extremely low, it apparently did not hurt the amount of money the company earned. In fact, it reported a record $ 5 billion in revenue, which is 61% higher than a year-on-year. What’s more impressive is that Nvidia will earn another $ 5 billion in revenue in the first quarter of 2022.
These positive prospects are surprising, as Q1 is generally slower than other quarters, even for the largest tech companies, as it follows the rush of people buying lots of products during the holidays. This is generally a slower period for product releases in technology and games. Let us also not forget that the shortage of GPU is still happening. Nvidia reiterated that the sparse supply will continue during the next quarter, but this is likely to be offset in its forecast of rosy revenue.
Nvidia says it expects the biggest estimate of $ 5 billion in revenue to come from the gambling market in the first quarter of 2022, although this is the segment it is currently facing the most difficult time. Since the launch of the RTX 30 series graphics cards, led by the RTX 3080, 3090, 3070, and followed by other products, Nvidia has not been able to meet the demand, although it is not the only company affected . AMD has also, perhaps more than Nvidia, struggled to keep a steady supply of graphics cards to retailers. My colleague Sean Hollister received comments from both companies on the shortfall. The ongoing pandemic certainly played a role in this, and possibly also the shortage of semiconductor chips.
Nvidia recently announced that it’s trying to make it easier for gamers, and not cryptocurrency miners, to get its RTX 3060 graphics card released tomorrow for $ 329. This is done by implementing GPU driver software that halves the ability to farm with Ethereum in an attempt to discourage crypto-miners from buying it. It also launches its CMP-dedicated mining processor in March, enabling Nvidia to serve the mining community in hopes of leaving more of the gaming GPUs for players to buy. Interestingly, during its investor call, Nvidia said that cryptocurrency-related sales make up a small part of its total revenue – only $ 300 million of $ 5 billion, indicating that miners did not play a major role in the GPU deficit .