Nvidia earnings expected to show record gaming sales despite shortage - MarketWatch

Nvidia Corp.’s holiday quarter is expected to produce record revenue, as the chip maker navigates a landscape in which customers struggle to buy its core gaming products.

Nvidia NVDA, -3.82% is expected to report record quarterly revenue of nearly $5 billion in its fourth-quarter results, which are scheduled to arrive Wednesday after the close of markets. Analysts believe that a surge in sales of gaming cards in the holiday quarter will be the main driver: Nvidia’s gaming sales are expected to surge 58% from the year-ago quarter to a record $2.36 billion, topping last quarter’s record of $2.27 billion, according to FactSet tabulations.

Gamers battled to find the company’s latest Ampere-based graphics processing units in the holiday season, and found it near impossible to find one that was not marked up significantly from the suggested retail price. Demand for gaming cards has grown so much that not only are Nvidia’s latest line of cards hard to find, but also previous generations have become difficult to buy as well.

Last Thursday, Nvidia said it hoped to ease shortages of gaming cards by launching a chip designed for cryptocurrency mining. Cryptocurrencies like bitcoin
Source…