Nvidia Shows Good Results By Focusing on Gaming Chips, Not Crypto Miners
Nvidia is set to be focused on gaming in the future. Despite two profitable years in which the company made a lot of money selling its GPUs to crypto miners, the truth is that the company doesn’t seem eager to be reliant on this earning source anymore.
In the Second Quarter Fiscal 2020 report (which is focused on Q2 2019), Nvidia earned less revenue than in the previous year, but was still above the expectations of some analysts. Also, the stocks of the company went up by 6% during this time.
The earnings of the quarter were $1.24 USD per share. Analysts were expecting $1.15 USD, so they were pleasantly surprised. The estimations of revenue were wrong, as Nvidia had a revenue of $2.58 billion USD against $2.4 billion projected by the analysts.
This year’s earnings, were, far less than the $3.12 billion that the company was able to get last year. This was mostly due to how many people stopped to buy GPUs to mine tokens.
With so much money coming from gamers and not a lot from miners, the main objective of the company is pretty obvious: forget the miners, focus on the gamers instead.
The CEO of the company, Jensen Huang, affirmed that real-time ray tracing, a technology used in games, was one of the main innovations of the decade. With great expectations on the gaming side and a stiff competition on the crypto one, there is not really a choice.
Nvidia is, however, starting to invest in AI technology, too, so we’ll probably see some interesting news related to this, too.