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The California chipmaker says its fiscal year 2022 first-quarter financials are on target to outperform expectations, with demand for crypto mining graphics cards on the rise.
Nvidia stated that the company’s original projections for the first quarter of fiscal year 2022 have been revised due to the good success of its different business segments.
The company made this known during its annual investor day on Monday, revealing the total revenue for quarter one is already tracking above the $5.30 billion forecast included in its previous end-of-year earnings call.
This strong business success has spread to Nvidia’s graphics processing unit sector, with the firm increasing its first-quarter sales forecast for its cryptocurrency mining processor, or CMP, software by threefold to $150 million.
Indeed, as previously noted by Cointelegraph, Nvidia set its initial target for crypto miner revenue in the first quarter of $50 million in February.
Surging demand, according to Nvidia’s press release, is at the core of the chipmaker’s ambitious outlook, with Colette Kress, executive vice president and chief financial officer, 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 threefold 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 accounted for 60% of Nvidia’s initial CMP forecast, and it is perhaps unsurprising that the firm has raised its outlook for the remainder of fiscal year 2022’s first portion.
Soaring demand for Nvidia GPUs has resulted in scarcity for gamers, with resellers preferring to deal with miners willing to pay large prices for the company’s hardware.