Despite the fact that Nvidia majors in the production of cryptocurrency mining equipment and that mining activity have reduced drastically in recent times, the company is still said to expect a rise in revenue this quarter. One of the explanations given by the analysts is that the company would expect its revenue from strong demand for data center and gaming devices as well.
The analysts speculated that although Nvidia estimated revenue from mining gadget would most likely fall, the bright side is that the company’s GPU (Graphics Processing Unit) is expected to have a drastic growth in both its gaming and server sales sector. While revenue from the data center of the company is expected to grow at 78% to $740million, the gaming sector of the company is estimated at 47% growth to $1.75 billion.
One of the analyst, CJ Muse from Evercore, shares the same opinion with his colleagues on the subject, stating that “data Center/AI remains an area of strength, particularly when considering additional benefit of a new gaming cycle favoring Nvidia.” he went further saying:
“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.”
Earlier this year, the company reportedly generated a massive revenue of $289million from processor sales to the digital currency market. The company’s crypto-related equipment sold has amounted to income which is about 9 percent of the company’s total revenue this quarter which stands at $32billion
The Original Equipment Manufacturer (OEM) revenue of the company, as a significant fragment of it (about 76 percent), was generated from sales of chips which is crypto-mining rated. This amounts to about 115% increase in the revenue generated in the previous quarter, but the company affirms the prediction of the analysts that the generated amount would likely fall in the second quarter of the year.
Last month, Nvidia’s estimates showed that the price of GPU’s has declined with Nose-diving prices of the cryptocurrency market. Though the company’s major competition with is AMD (Advanced Micro Devices) announced earlier this year that 10 percent of the company’s income has been generated through the sales of mining equipment and blockchain related technologies which the CEO, Lisa Su while referring to blockchain, saying it was: “a bit of a distraction in the short term.”
Also, some manufacturers have not been discouraged from the production of crypto mining equipment and hardware. ASUS recently announced the launching of what is called “the second generation” cryptocurrency mining motherboard equipment. The launch is set to be in North America which is going to hold at the beginning of the third quarter of 2018.
In summary, companies at this point in crypto-mining are predicted to reserve their strategies perhaps for a later time, but there are certainly some companies that would still go on in mining, developing and launching cryptocurrency related hardware. Though the digital market is embedded with surprises, there are endless possibilities for the potential of blockchain technology.