BTC Wires: Nvidia is set to go against the tide as its revenues are expected to increase this quarter in spite of abating cryptocurrency mining, as reported by Marketwatch on August 10. The boost in the revenue is the result of growing demand for the company’s gaming devices and data-centers.
Analysts believe that the decline in revenue due to “waning” cryptocurrency mining will be compensated with gaming and servers sales. The gaming products manufactured by this U.S. based company are witnessing substantial growth as they try to intersect the increasing demand curve. The gaming sector, in particular, is anticipating an increase of 47 percent which amounts to $1.75 billion. Revenue from data centres is expected to grow by 78 percent to $740 million.
C.J. Muse, an analyst at Evercore, in context of Nvidia’s increasing revenues said, “Data Center/AI remains an area of strength, particularly when considering additional benefit of a new gaming cycle favoring Nvidia. We believe concerns around a likely falloff from cryptocurrency-driven Ethereum GPU mining strength are largely exaggerated, and Nvidia will likely power through any tough compares from cryptocurrency-driven tailwinds.”
The month of May saw Nvidia’s processor sales generate $289 million. The crypto sales in the first quarter were $3.2 billion, which was 9 percent of the total revenue. Sale of crypto mining chips was 76 percent of OEM (Original Equipment Factor) revenue, which was 115 percent more than the previous quarter.
July put the company to a test as the price of GPUs declined. The fall in the price of the processors was the result of their correlation with the digital currency market where the prices of cryptocurrencies were tumbling down. Advanced Micro Devices (AMD), Nvidia’s main rival stated that 10 percent of company’s revenue for the month of April was the consequence of its involvement in blockchain or mining. Nvidia’s CEO, Lisa Su, however went against AMD’s statement and called blockchain “a bit of a distraction in the short term.”
The decline in the prices of mining hardware has not discouraged the manufacturers as they keep coming up with new products in the market. One such example is of ASUS, as they buckle up to launch their second generation cryptocurrency mining motherboard.