Nvidia expects crypto-mining chip to bring in $50M in Q1

Nvidia’s recently-announced crypto-mining processor (CMP) should bring in around $50 million in revenue in the first quarter of FY 2022, the company said Wednesday. 

The chipmaker shared its expectations for the new product on a conference call, following better-than-expected Q4 earnings. Nvidia posted record revenue in Q4 in both its gaming and data center segments, with gaming bringing in $2.5 billion.

Nvidia estimates that cryptomining contributed $100 million to $300 million to its gaming segment in Q4. However, CFO Colette Kress noted Wednesday that the company can’t accurately track or quantify the end use of its gaming GPUs, since they are sold to graphics card manufacturers and then onto distribution. 

The rise in cryptocurrency mining has led to a chip shortage for gaming, which Nvidia hopes to alleviate with the new CMP. The new chip will start shipping in March, and Nvidia plans to sell it directly to industrial miners. 

“Cryptocurrencies have recently started to be accepted by companies and financial institutions and show increased signs of staying power,” Kress said. “CMP products will let us gain some visibility into the contribution of cryptomining to our overall revenue.”

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