The global chip shortage has been a pressing issue for all of 2021 and will likely continue throughout 2022, as NVIDIA CEO Jensen Huang told Yahoo Finance in November of last year. Nevertheless, Huang’s company is hitting this worldwide issue in stride and was able to close out the year strong with a total revenue of $7.6 billion in Q4, an increase of almost $500 million compared to Q3. This success is once again based on two central pillars as our chart shows.
Since NVIDIA is primarily known for its gaming graphics processing units (GPU), it’s no surprise that 45 percent of its total revenue was generated in this segment, closely followed by its data center solutions. While NVIDIA tried alleviating the continued GPU shortage caused in part by cryptocurrency miners by releasing dedicated mining cards, interest in these special chipsets petered out towards the end of 2021. After stagnating sales in the third quarter, these dedicated chips only brought in $24 million in revenue between October and January according to the GPU manufacturer.
The gaming GPU market has become a duopoly over the last years, with NVIDIA and AMD as the big players and one clear winner. According to the latest monthly hardware survey by Steam, the leading online store for video games, 77 percent of participants in the January questionnaire used a card with an NVIDIA chip. Even though both companies manufacture their own graphics cards, most of the models including the respective chipsets are cards by other manufacturers. NVIDIA not only wins the graphics race by userbase but also in terms of financial aspects: According to AMD’s latest quarterly report, its computing and graphics division including client microprocessors, GPUs and data center solutions generated approximately $2.6 billion between October of 2021 and January of 2022.
This chart shows NVIDIA’s quarterly revenue by markets.
