NVIDIA Q3 revenue of $7.1 billion, net income up 84% year-over-year

NVIDIA (NVDA) announced its financial results for the third quarter of the fiscal year 2022. The financial results show that Q3 revenue of $7.103 billion was better than market expectations of $6.82 billion, compared with $4.726 billion a year earlier, up 50% year-on-year; under GAAP accounting standards, net income was $2.464 billion, compared with $1.336 billion a year earlier, up 84% year-on-year.

NVIDIA reported revenue of $7.103 billion for the third quarter of 2021

The lack of graphics cards on the market does not seem to have had a negative impact on the company. NVIDIA once again reported record sales and a strong increase over the previous quarter. This is due to the fact that the few graphics cards that hit the market are sold immediately due to low inventory levels.

In the third quarter of 2021, the company recorded total sales of $7.103 billion. That’s an increase of about 50% from the same period last year when they took in $4.726 billion. That’s also a 9% increase over Q2 2021 when they earned $6.507 billion.

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Perhaps the most interesting data can be found in the breakdown of revenue by segment. According to NVIDIA, the revenue breakdown is as follows:

  • Gaming: revenue of $3.22 billion, a 42% increase over the same period last year.
  • Data Center: Revenue of $2.94 billion, an increase of 55% year-over-year
  • Professional Visualization Products: Sales of $577 million, an increase of 144% over the same period last year
  • Automotive business: revenue of $135 million, an 8% increase over the same period last year.

What is remarkable about the data is that 42% of the revenue comes directly from the gaming segment. This means that it comes from NVIDIA GeForce graphics cards.

Graphics cards for Ethereum mining are losing momentum

We saw NVIDIA introduce CMP graphics cards for Ethereum mining earlier this year. These graphics were largely based on the Ampere architecture (RTX 20 series), which preceded the Turing architecture (RTX 30 series).

In the first quarter, this division reported revenue of about $155 million. This was due to the fact that they had only recently been introduced. Specifically, the two simplest models were introduced.

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In the second quarter, NVIDIA CMPs generated $2.66 billion in revenue. According to NVIDIA, this division of Ethereum mining graphics cards generated $1.06 billion in revenue in the third quarter. This represents a 60% drop in revenue compared to the second quarter.

All indications are that interest in this market will continue to decline. The main reason for the lack of interest is the move to Ethereum 2.0 and the switch to proof-of-stake consensus. This consensus does not require a graphics card for block generation.