Apparently, Cryptocurrency and Nvidia go hand in hand after the graphics card company released its third-quarter earnings this Thursday.
Nvidia reported revenues of up to $2.64 billion with shares of $1.33 beating Wall Street predictions of $1.07 per share. The growth was reportedly due to crypto-currency linked demand for its graphics cards. Cryptocurrencies such as Bitcoin have been skyrocketing as of late. The digital currency has recently passed the $7000 mark.
The company also announced an increase in dividend starting from December with shares getting a bump from $0.14 to $0.15. Even though Nvidia is making big bucks of the rise of cryptocurrency, the company is still wary of putting all their eggs in one basket.
Cryptocurrency is good for business
Chief Executive Officer, Jen-Hsun Huang, stated on an earnings call that cryptocurrency is an obvious fit for the graphics juggernaut but also acknowledged the „ebb and flows” of the digital money.
„For some time, we’re going to see that crypto will be small, but not zero, part of our business.”
Competition is fierce between Nvidia and Intel as of late with the former having announced a partnership with AMD for a single-chip CPU and GPU card.Intel and AMD continued this joint partnership and started a new graphics division at Intel. The division would develop new graphics cards that will, no doubt, cross into Nvidia’s territory.
According to the CEO, Sales of Nvidia graphics cards sales have been booming thanks to cryptocurrency. Chief Financial Officer for Nvidia, Colette Kress, also claimed that cryptocurrency related products have registered an increase in revenue of about $70 million in the quarter that ended on the 29th of October. She also considers the currency to still be unpredictable.
„It is volatile, does not and will not distract us from focusing on our core gaming market,” Kress said.
Nvidia also announced it will be moving its headquarters from Wachovia to Santa Clara, California the purchase reaching up to $350 million.
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