Nvidia posts record Q1 revenues as profits soar by 145%

Meanwhile, GPU prices "beginning to normalise" following cyrptocurrency surge

Nvidia has reported record revenue for the latest quarter, spiking by 66 per cent from $1.9 billion to $3.2 billion.

Income for the quarter was up by 145 per cent, reaching $1.2 billion compared to $507 million the same period last year.

Gaming revenue alone accounted for $1.7 billion, with a 68 per cent increase year-on-year, thanks in part to the strong performance of the Nintendo Switch which runs on Nvidia hardware.

"The gaming market remains robust and the popular battle royale genre is attracting a new wave of gamers to the GeForce platform," said executive vice president and CFO Colette Kress during a call with investors.

"The launch of popular titles, like Far Cry 5 and Final Fantasy XV continued to drive excitement in the quarter."

Nvidia also confirmed that GPU prices were "beginning to normalise" following the spike in cryptocurrency interest which saw graphic card prices double, though they remain "higher than where they should be".

"Cryptocurrency demand was again stronger than expected, but we were able to fulfill most of it with crypto-specific GPUs, which are included in our OEM business at $289 million," Kress added.

"As a result, we could protect the vast majority of our limited gaming GPU supply for use by gamers. Looking into Q2, we expect crypto-specific revenue to be about one-third of its Q1 level."

The surge in demand from cryptocurrency miners, coupled with the international phenomena that is PlayerUnknown's Battlegrounds and Fortnite, caused a notable uptick in the demand on GPUs from all over the world.

"My sense is that there's a fair amount of pent-up demand still," said CEO Jen-Hsun Huang. "Fortnite is still growing in popularity. PUBG is doing great. And then we've got some amazing titles coming out. And so my sense is that the overall gaming market is just really, is super healthy.

"And our job is to make sure that we work as hard as we can to get supply out into the marketplace. And hopefully, by doing that, the pricing will normalize and the gamers can buy into their favorite graphics card at a price that we hope they can get it at. And so I think there's a fair."

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