Nvidia reaches new record for revenues, EPS in Q1

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Nvidia reaches new record for revenues, EPS in Q1

Graphics-chip maker Nvidia (NVDA) beat first-quarter financial targets thanks in part to sales of chips used for mining cryptocurrencies like Bitcoin and Ethereum.

Another big surprise is the OEM & IP department, reporting a revenue of USA $387 million, up by staggering 148 percent compared to the same quarter past year and 115 percent compared to the previous quarter. But fears of drastic losses in that segment sent Nvidia's stock tumbling 7.85% in after-hours trading. If you haven't guessed it by now, Nvidia saw record revenue of $3.21 billion, a whopping 66% rise from a year ago.

Much of the company's profits, though, can be traced to its gaming-centric products: Of the company's revenue, mainstream graphics cards represented $2.77 billion, while data centre products accounted for only $700 million. AMD reported first-quarter revenue of $1.65 Billion out of which 10% was crypto sales, indicating they made only $165 Million. As a result, many gamers weren't able to get their hands on new GeForce cards.

Nvidia expected to make $200 Million through cryptocurrency sales but made almost 50% more.

Demand from cryptocurrency miners was stronger-than-expected in the first quarter and translated into revenue of $289 million, Nvidia said Thursday on its earnings conference call. CEO, Jensen Huang stated in the report that Nvidia's "datacentre business achieved another record and gaming remained strong". Huang said that the company has doubled sales of its chips to cloud data centers for deep learning, but investor response was muted due to lower-than-expected sales.

"The crypto thing is no longer a relevant bear theme", Mosesmann said in a note to clients. The company also conceded that some of its gaming revenue also includes sales to casual miners, and given that professional miners plundering the commercial market spurred the graphics card shortage, it is possible that a portion of Nvidia's gaming revenue is also tied to professional miners.

Needham analyst Rajvindra Gill maintained his buy rating and upped his price target to 325 from 300. Gill expects data-center and autonomous-driving markets to continue to provide robust growth.

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