Nvidia Corp (NASDAQ:NVDA) has reported that its first-quarter performance is “tracking above” its previous forecasts, thanks in part to demand for its computer processors which are used to mine cryptocurrency.
In an update issued overnight, the maker of graphics cards and computer processors said revenues for the first quarter are tracking higher than the US$5.3bn figure issued in its year-end earnings call, adding that it is seeing outperformance across all of its market platforms.
The company also raised the first-quarter revenue estimate for its new CMP product, designed specifically for industrial-scale crypto mining, to US$150mln from its previous forecasts of US$50mln.
“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 [the first quarter]”, Nvidia executive vice president and chief financial officer Colette Kress said in a statement.
Graphics processors such as those made by Nvidia have proved popular with crypto miners due to their ability to process the large and complex mathematical algorithms required for the mining process. However, this has had the effect of pushing up component prices for other users of graphics processors, namely video gamers and designers who use computer modelling software.
Shares in Nvidia were up 0.4% at US$611 in pre-market trading in New York on Tuesday.