CFO Colette Kress said at the 2018 Bank of America Global Tech Conference that autonomous driving and gaming would continue to drive demand for the company's graphics processing units (GPUs). The products are also used for mining cryptocurrencies, but Kress said that remains a small part of the chipmaker's overall business, in response to a question. "[Crypto] is a small portion of our business," Kress said.
"[There has] been volatility we knew would occur in terms of the overall crypto market...but we also believe we have tremendous opportunities in many other parts of the business [such as] gaming, data center, autonomous driving," Kress said. "That's where we're focusing."
On its quarterlyearnings call on May 11, Nvidia said that it expects cryptocurrency mining-related demand for its graphics processing units, or GPUs, to drop by about two-thirds in the second quarter, causing its stock to drop despite otherwise strong results. Competitor AMD's CEO Lisa Su also talked about slowing GPU demand during the 2018 JP Morgan Technology, Media and Telecom Conference on May 15.
Last quarter, Nvidia reported earnings per share of $1.98 on a GAAP basis compared to analysts' consensus estimates of $1.46 and revenue of $3.21 billion compared to estimates of $2.89 billion.
Kress told investors on Tuesday that the gaming market is continuing to grow. Last quarter, Nvidia's gaming revenue, which accounts for more than half the company's total revenue, rose 68% year-over-year to $1.72 billion, ahead of a $1.61 billion consensus estimate.
"Gaming [has] expanded to where it is...because [there's] an entire ecosystem that is focused on a social sport," Kress said, adding that now "gamers start younger, they stay longer."
Nvidia shares were flat at $264.84 Tuesday afternoon; they have increased 37% since the beginning of the year.