Nvidia Expects its Crypto Sales to Drop by Two-Thirds in the Second Quarter
Crypto mining equipments
American graphics processing unites manufacturer Nvidia has reported that the company generated 289 million dollars from crypto processor sales in the first quarter. It was reported that Nvidia made higher sales in their first quarter than they actually anticipated. The company CEO Jensen Huang said that they exceeded expectations because of the increase in demand for GPUs from digital currency miners which led to higher prices.
According to Huang:
“Miners purchased so many GPUs machines which led to increased prices. The increased prices, however, prevented other customers like the gamers from purchasing the latest graphics card series.”
Their first-quarter sales amounted to 9 percent of their overall revenue which at the time stood at 3.2 million dollars. The chips for cryptocurrency mining made up 76 percent of the Original Equipment Manufacturer revenue which had gone up by 115 percent from the previous quarter. Nvidia, however, noted that their sales to the cryptocurrency market were likely to go down by two thirds in this coming quarter. The revenue for miners already decreased at the start of the year when the crypto markets were corrected after their all-time high in December 2017.
One positive thing is that the hashrates have continued to grow meaning that mining continues to become popular all over the world. Nvidia’s main competitor Advanced Micro Devices also revealed that the company had generated a 10 percent sales from Blockchain sales and cryptocurrency. AMD CEO Lisa Su noted that blockchain technology had a very big potential for growth and entry into the mainstream but added that it is not the main growth factor. According to Lisa:
“We have a good idea of the people who use our products. We are very happy because of Blockchain technology growth even though it is certainly not the dominant growth factor in our story. We will, however, continue exploring the sector to offer the best services to our clients.”