The California chipmaker says Q1 financials for fiscal 2022 are on track to surpass initial estimates with demand for crypto mining graphics cards on the rise.
Nvidia says the positive performance of its various market segments has seen the company revise its initial forecasts for Q1 of fiscal 2022.
The company made this known during its annual investor day on Monday revealing total revenue for Q1 is already tracking above the $5.30 billion forecast included in its previous end-of-year earnings call.
This positive market performance has also extended to Nvidia’s graphics processing unit, or GPU, sector with the company raising its Q1 revenue estimate for its cryptocurrency mining processor, or CMP, product three-fold to $150 million.
Indeed, as previously reported by Cointelegraph, Nvidia had set its initial forecast for crypto miner sales for Q1 at $50 million back in February.
According to Nvidia’s press release, surging demand is at the heart of its optimistic outlook with Colette Kress, executive vice president and chief financial officer of the chipmaker adding:
“Overall demand remains very strong and continues to exceed supply while our channel inventories remain quite lean. We expect demand to continue to exceed supply for much of this year. We believe we will have sufficient supply to support sequential growth beyond Q1.”
Nvidia’s three-fold increase in revenue estimates for its CMP product are yet another indication of the surging demand for crypto mining hardware. In March, cryptocurrency mining firm Hut 8 announced the purchase of $30 million worth of Nvidia GPU hardware.
The Hut 8 order alone filled 60% of Nvidia’s initial CMP estimate, and it is perhaps unsurprising to see the company up its outlook for the rest of Q1 of fiscal 2022.
Soaring demand for Nvidia GPUs has also meant shortages for gamers with resellers electing to transact with miners ready to pay significant premiums to acquire the company’s hardware.