NVIDIA Breaks Sales Records due to Miners

Nvidia upbeat current-quarter revenue forecast on Thursday underscored surging demand for its graphics chips used in data centres, gaming devices and cryptocurrency mining
09 February 2018   397

NVIDIA announced on Thursday record revenue for the fourth quarter ended January 28, 2018, stating that demand for Nvidia graphics chips remained at a high level due to the cryptocurrency miners.

Strong demand in the cryptocurrency market exceeded our expectations. While the overall contribution of cryptocurrency to our business remains difficult to quantify, we believe it was a higher percentage of revenue than the prior quarter.

Colette Kress

Chief Financial Officer, NVIDIA

Nvidia’s revenue from gaming, for which it is best known, rose 29% to $1.74 billion, accounting for a more than half of its total revenue in the fourth quarter, and also beating analysts’ estimate of $1.59 billion.

Nvidia said it had a benefit of $133 million in the quarter as a result of recently enacted U.S. tax reform. The company expects to have a tax rate of 12%, plus or minus 1 percentage point, for the quarter. That's down from around 17% previously, Kress said.

In the fourth quarter, Nvidia introduced the Titan V graphics processing unit for desktop PCs, and it also changed the licensing terms for some of its GPUs.

Nvidia said it's expecting $2.9 billion in revenue, plus or minus 2 percent, for the first quarter of its 2019 fiscal year. Analysts were expecting guidance of $2.46 billion in revenue for the quarter.

We have recently reported that AMD, the main competitor of Nvidia, is planning to increase production of graphics cards, which are currently in short supply because of the crypto mining popularity.

FCC Demanded a Miner to Turn Off his Mining Hardware

The FCC concluded that the mining rig was generating spurious emissions and causing harmful interference on T-Mobile’s broadband network
21 February 2018   70

According to the U.S. Federal Communications Commission (FCC) notification, it has received a complaint from T-Mobile with regards to “interference to its 700 MHz LTE network in Brooklyn, New York” during last year. The commission’s agents confirmed that the “radio emissions in the 700 MHz band were emanating from…an antminer s5 bitcoin miner.”

In the notification, the FCC states that ‘the device was generating spurious emissions on frequencies assigned to T-Mobile’s broadband network and causing harmful interference”.

The commission issued a warning to the owner of the mining hardware Victor Rosario. He was not allowed to continue the operation of the device because it caused harmful interference. A violation of the Federal laws cited above and could subject the operator to severe penalties, including, but not limited to, substantial monetary fines, in rem arrest action to seize the offending radio equipment, and criminal sanctions including imprisonment.

According to the FCC, it has not made a determination as to whether or not other Antminer S5s produce disruptive emissions in the 700 MHz band. It also emphasizes that it does not wish to suggest that all Antminer S5 devices are noncompliant but it aware that devices can be modified in a manner that creates harmful interference.