What's going on?

US chipmaker Nvidia � which makes microchips for everything from gaming to crypto mining � uploaded an unexpectedly upbeat quarterly update this week.

What does this mean?

With rising demand meeting globally constricted supply, Nvidia was likely able to hike the prices of its products. That might help explain why revenue and profit came in 5% and 12% higher last quarter than investors had predicted.

The situation�s set to continue this quarter too: Nvidia reckons revenue will come in around 15% higher than previous analyst forecasts. That�s also down to the dedicated cryptocurrency mining chips the company recently launched, mind you. It�s hoping they�ll stop miners hoarding semiconductors that are intended for gamers � while contributing an additional $400 million worth of sales.

Why should I care?

For markets: There are greater forces at play.

Nvidia�s stock didn�t move much after its earnings announcement. That could be because the chip shortage is nothing new, and investors who have seen Nvidia�s stock soar 25% over the last three months might�ve sold off some of their holdings and banked some of their winnings as others bought in. There�s also the small matter of the firm�s $40 billion purchase of British microchip designer ARM, which is currently undergoing extra UK government scrutiny. The success (or otherwise) of that deal will likely have a much bigger impact on Nvidia�s long-term earnings potential than a few strong quarters.

Zooming out: Chipping away at the power conundrum.

Those dedicated crypto mining chips might not fly off the shelves if concerned authorities in China have their way: they�re now taking action against excessive energy consumption in the country�s bitcoin-mining heartland. A lot of this activity could be powered by green energy sources, but the difficulty is getting electricity where it�s needed. If these Chinese crackdowns push more mining to places with greater access to green energy, crypto could go greener too.