Nvidia Corporation projects a strong demand for chips used in gaming PCs, crypto mining, and data centers, according to Bloomberg. The company, largest chipmaker in the U.S, expects current quarter revenues from chips to be approximately $6.3 billion, up from analysts’ estimate of $5.49 billion.
Nvidia founder and CEO Jensen Huang has attracted investors by convincing them that his graphics chips will be the cornerstone for artificial intelligence-led computing.
Nvidia expects $400 million of Q2 revenue to be generated from special chips it has built for crypto miners.
The California-based company expects crypto chips to prevent the overreliance on gaming graphics products that will stop a glut of used parts in future.
Nvidia has faced chip shortages like peers as it still depends on TSMC and Samsung Electronics Co. for supply.
The company’s data center sales for chips climbed 79% to hit $2.05 billion in the Q1 from last year, while gaming revenue doubled to $2.76 billion.
Nvidia’s revenue in Q1 jumped 84% to $5.66 billion while profits were $3.66 a share, more than expected sales of $5.41 billion and per share of $3.31.
Nvidia stock is currently gaining. NVDA: NASDAQ is up 0.45% on premarket.
