Jensen Huang, the founder, president, and CEO of Nvidia talked yesterday with Jim Cramer, the host of CNBC’s program Mad Money about the history of the company and its future. They talked about the long-running business of computer graphics and the different markets that Nvidia touches as a brand: pre-rendered graphics, server services, and even gaming. And inevitably, the topic of cryptocurrencies and its influence on the growth of the company came up sooner than later.
When questioned about the negative influence that the recent slump in the cryptocurrency market could have on the company’s stock price, Jensen dismissed it. He replied that cryptocurrencies were a significant part of their business, but not a part of their core revenue activities. Gaming, Pre-Rendered graphics, Artificial Intelligence and their new division of self-driving systems for autonomous cars, those were their core businesses.
Jensen Huang stated this although a report of the last quartet of past year asserted that they had beaten the estimated goal by the push of cryptocurrency mining, as shown here. He is, most likely toning down the recent slump of the market and bringing security for shareholders that feel that the current growth of the company will be hampered in the next quarters.
There is also a troubling factor not considered by them thought: the rise of ASICS in cryptocurrencies traditionally mined only by GPUs, like Monero and Ethereum. Bitmain, the Chinese mining hardware giant, has announced the launch of ASIC miners for these those currencies, a thing that could bring down sales of GPUs, the main source of Nvidia’s earnings; though the dev communities of the said cryptocurrencies are considering changes in their Proof-of-Work algorithms to avoid centralization.
Lastly, Jensen reaffirmed the importance of blockchain technology in the near future and stated that cryptocurrencies were here to stay. We’ll see if the company’s financial results are in concordance with what he said later this year.