Nvidia Revenue Outpaces Q1 Forecasts, Partly Driven by Crypto Chip Demand

Graphics card producer Nvidia said Q1 revenue is “tracking above” the $5.30 billion it expected in February, partly on better-than-expected sales of processors aimed at the cryptocurrency mining market.

Shares of Nvidia rose 5% to $608 into after-hours trading.

“We are experiencing broad-based strength, with all our market platforms driving upside to our initial outlook,” said Colette Kress, executive vice president and chief financial officer of NVIDIA.

Nvidia said it expects it will earn $150 million from its Cryptocurrency Mining Processors (CMPs), up from $50 million it predicted in its February outlook. The California-based firm began selling these crypto-specific mining GPUs this year, in part, to quench demand from miners who buy graphics cards to mine ether and other cryptocurrencies. Alongside hobbyists and smaller miners, at least one professional firm, Hut 8, bought $30 million of these CMPs in March.

Part of the company’s general GPU sales have been driven by mining demand, as well, causing a headache for PC gamers and other consumers.