Nvidia has shared its Q4 2021 earnings, and regardless of the corporate’s GPUs being in extraordinarily low provide, it didn’t appear to damage how a lot cash the corporate made. Actually, it reported a file $5 billion in income, which is up 61 % year-over-year. What’s extra spectacular is that Nvidia expects to make one other $5 billion in income during Q1 2022.
This constructive outlook is shocking provided that Q1 is usually slower than different quarters, even for the largest tech firms, as it follows the push of individuals shopping for plenty of merchandise during the vacation interval. It’s usually a slower interval in basic for product releases throughout tech and gaming. Additionally, let’s not neglect the GPU shortage continues to be taking place. Nvidia reiterated that sparse provide will proceed via the subsequent quarter, however that’s probably factored into its rosy income prediction.
Sparse GPU provide will proceed via the subsequent quarter
Nvidia says it expects most of that $5 billion income estimate in Q1 2022 to come from the gaming market, regardless of being the section it’s at present having the hardest time serving. Because the launch of the RTX 30-series desktop graphics playing cards, main with the RTX 3080, 3090, 3070, and adopted by different merchandise, Nvidia hasn’t been ready to meet the demand — although it’s not the one firm affected. AMD has additionally struggled, maybe greater than Nvidia, to preserve a regular inventory of graphics playing cards heading to retailers. My colleague Sean Hollister received feedback from each firms on the shortage. The continued pandemic has actually performed a position in this, and probably the shortage of semiconductor chips.
Nvidia just lately introduced that it’s making an attempt to make it simpler for avid gamers, not cryptocurrency miners, to get its RTX 3060 desktop graphics card that’s releasing tomorrow for $329. It’s doing that by implementing GPU driver software program that weakens its means to farm Ethereum by half, in an effort to discourage crypto miners from shopping for it. It’s going to additionally introduce its CMP devoted mining processor in March, which Nvidia is making to serve the mining neighborhood with the hope that they’ll go away extra of the gaming GPUs for avid gamers to buy. Curiously, Nvidia mentioned during its investor name that cryptocurrency-related gross sales accounted for a small slice of its whole income — simply $300 million of $5 billion, suggesting that miners didn’t play a main position in the GPU shortage.