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Nvidia is giving the people what they want
In 2020, Nvidia was a huge beneficiary of consumers looking for sources of entertainment that didn't involve face-to-face interaction. Insert, Gaming.
New gaming mentions rocketed (+120% in the last year vs. prior year), and this showed up in the company's results.
Last quarter, Nvidia gaming segment revenue increased by 37% YoY, setting a record -- and driven by demand for graphics cards for computers and consoles.
In the last quarter, these gaming mentions are continuing an upward trajectory.
PC-specific gaming mentions increased +29% YoY in the last 90 days, outperforming generic gaming mentions and even console-specific gaming mentions.
But Nvidia offers consumers more than elevated gaming solutions.
Earlier this month, Nvidia announced it was limiting the hash rate of its new GeForce 3060 GPUs by 50% to make them less desirable to miners.
The company simultaneously announced the launch of a new product: Nvidia CMP (Cryptocurrency Mining Processor) for professional cryptocurrency mining.
Essentially, demand was so high for its chips that gamers couldn't get their hands on them.
This move is very strategic. Just look at the chart below, displaying cryptocurrency mining mentions.
Nvidia-specific mining mentions have surged since this announcement.
Overall, data confirms that consumer demand is still growing for NVDA's consumer facing products (+102% YoY in the quarter being reported).