Graphics card manufacturer Nvidia released the statement of income in the first quarter of 2018. A separate item in the document includes data about sales of products for the cryptocurrency market: revenue amounted to $289 million representatives of the company noted that demand from miners has exceeded expectations.

As explained by the CFO of Nvidia, shared profit increased by 66% compared to the previous year and 10% in comparison with the last quarter of 2017, reaching in the first quarter of this year the record figure of $3.21 billion, with growth in every direction.

The company reports:

The amount of profit from sales of the cards is $2.77 billion, which is 77% higher than a year earlier and 12% more than in the last quarter of 2017. Maximum net profit was obtained from the sale of equipment for gamers and data centers.

Profit from sales of equipment for gamers increased by 68% compared to last year and down 1% compared to the previous quarter. Profit from sales of equipment for data centers exceeded $700 million, showing an increase of 71% compared to the previous year and 16% compared to the last quarter of 2017.

Profit from OEM sales included $289 million from the sale of graphics cards for mining. The company first published data on the distribution of equipment to the representatives of the cryptocurrency sector.

According to Bloomberg, the demand of the miners in the first quarter exceeded expectations. During the online investor conference devoted to the statement of income, the head of Nvidia Juan Gensun said:

In the first quarter the miners are actively buying our graphics card, which led to higher prices. Because of this, many gamers failed to buy a new Geforce.

However, the company expects the current quarter sales in this sector decreased by two thirds.

Earlier this year, Juan Gensun predicted that in the next few years, the popularity of cryptocurrencies will grow, despite pressure from regulators. In particular, the head of Nvidia said that “cryptocurrency is not going anywhere”.

In March, he said in an interview with CNBC that the cryptocurrency and the blockchain, being a “fundamentally new form of computing”, will be a significant driving force for the market of graphics cards. In addition, Huang said that Nvidia should increase their production. He acknowledged that growth in demand may be due to the decentralized nature of cryptocurrencies:

Suitable supercomputers have very many people around the world, so there is no single power or authority capable of controlling the currency.

Profit is the main competitor Nvidia, AMD has also increased due to increased sales of equipment for miners.

According to the report of the analytical company Jon Peddie Research, the demand from the cryptocurrency sector has allowed AMD to reduce the market gap from Nvidia. In the first quarter of 2017, the share of AMD in the graphics market increased from 27.2% to 33.7%. The authors of the report note that the AMD at lower price offers virtually the same performance in the field of mining, and Nvidia.

In April, AMD announced that its first-quarter profit totaled $1.65 billion, and net income of $81 million. Again, this contributed to stable demand for equipment for mining. The President of AMD Lisa su said:

The first quarter was a great beginning of 2018: we showed an increase of 40% compared to the previous year.