The gold rush is over. Cryptocurrencies are no longer causing an inflation of GPU prices.
In our blog article ‘Nvidia High End GPUs in Limited Supply’ (https://rhynonetworks.com/nvidia-high-end-gpus-in-limited-supply/) from February of this year, we spoke about graphics card shortages that PC gamers were facing because of the rise of cryptocurrency. Well…this is it! We’ve reached the end of the battle. For gamers, graphic designers, and the like, the inflated pricing of video cards is finally over.
While that’s good news for consumers, Nvidia Corporation is taking a hit. This is not only from the loss of their sales to the cryptocurrency market, but also to their stock price as nervous investors train their eyes only on the shallow loss of cryptocurrency purchases and not on the company growth in their main markets.
Nvidia’s founder and Chief Executive Jensen Huang was quoted as saying, “Our core platforms exceeded our expectations, even as crypto largely disappeared. We’re projecting no cryptomining going forward.”
That swift change of prognosis was no doubt brought about by the lack of predicted revenue from cryptocurrency miners during the second fiscal quarter. While Nvidia had predicted about $100 million in sales from chips to that sector, actual sales numbers totaled only $18 million instead.
On the gaming side of things, Nvidia reported that sales rose 52% to reach $1.8 billion in sales to the gaming industry in the second quarter. Data-center revenue also increased and saw a rise of 83%, taking it to $760 million. Both massive increases topped analysts’ estimates and show that while the cryptocurrency boom may be over, graphics cards are still very much in demand.
RHYNO Networks was designed to meet the needs of the IT marketplace. Specifically, to offer businesses skilled, timely IT services in order for them to focus on their business. We’re dedicated to the principles of Reliability, Innovation and Customer Service.