Thursday, February 25, 2021
“Dig” chip in the making
Graphics cards push Nvidia’s business
Some graphics cards from Nvidia are currently hard to come by – partly because they are useful in the production of bitcoins. The company is trying to take countermeasures. Meanwhile, business with data centers is also in full swing.
The high demand for technology for data centers and graphics cards means that Nvidia’s business continues to grow rapidly. In the past three months, sales jumped 61 percent year-on-year to $ 5 billion. The profit rose in the fourth quarter of the fiscal year, which ended at the end of January, by a good 53 percent to around 1.46 billion dollars (1.2 billion euros), as Nvidia announced after the US market closed.
The gaming segment with the graphics card business remained the largest source of revenue with quarterly sales of 2.5 billion dollars – 67 percent more than a year ago. The cards are not only in demand with video gamers, but also for the production of the cryptocurrency Bitcoin.
The Bitcoin exchange rate had risen sharply in the past few months, so that “digging” for digital money on the computer became more attractive again. After a previous Bitcoin boom ended, Nvidia struggled with overcapacity. This time the company is trying to take countermeasures at an early stage: With a new graphics card model, cryptocurrency production is blocked, while Nvidia announced a special chip for it. Nvidia boss Jensen Huang admitted in a conference call with analysts that it will take some time to separate the two scenarios.
Nvidia’s data center business grew 97 percent year over year to $ 1.9 billion. The graphics card technology from Nvidia is well suited for applications based on machine learning – which, for example, are being used more and more in image processing.
Auto sales fell 11 percent year-over-year to $ 145 million. Nvidia supplies the automotive industry with electronics and is also developing a platform for autonomous driving. Among the partners are Mercedes-Benz and the Robotaxi developer Zoox, which was taken over by Amazon.
In after-hours trading, the Nvidia share lost around two percent at times, as investors fear a slowdown in business with data centers.