Nvidia Chips Are Used in Cryptocurrency Mining

Cryptocurrency brings $150 million in revenues

In addition to cloud computing and autonomous driving industries where advanced Nvidia (NVDA) chips have been shown to be in strong demand, cryptocurrency is another promising market.

Nvidia and rival Advanced Micro Devices (AMD) are suppliers of graphics chips for the powerful computers used to mine cryptocurrencies such as Bitcoin and Ethereum. Nvidia stated that its sales of chips to the cryptocurrency mining market brought in ~$150.0 million in revenues in fiscal 2Q18 (June 2017 quarter).

Nvidia Chips Are Used in Cryptocurrency Mining

Games and data center sales drive top-line growth

Nvidia’s total revenues for the quarter totaled ~$2.2 billion, up 56.0% year-over-year and above the consensus estimate of $2.0 billion. Games and data center chip sales drove its gains in the quarter. The company’s data center revenues increased 175.0% year-over-year to $416.0 million.

Gaming is Nvidia’s largest revenue category, bringing in 53.2% of its total revenues in fiscal 2Q18. The chart above shows Nvidia’s major revenue streams by market category.

Looking beyond games

With escalating competition in the gaming market, Nvidia is hunting for growth opportunities outside its core gaming footprint. Cloud computing, autonomous driving, and cryptocurrency are some of its target markets.

According to Nvidia, it has made significant progress in the cloud computing and autonomous driving markets. The company says that all major Internet and cloud computing service providers have embraced its advanced graphics chips to execute and accelerate artificial intelligence–related processes.

Amazon (AMZN) and Microsoft (MSFT) are the top two cloud providers in the world. In the autonomous driving field, Nvidia counts Toyota (TM) among its partners.