Those keeping an eye on the cryptocurrency and GPU markets will be keenly aware that demand for mining GPUs has been plummeting lately, as too has the value of most major cryptocurrencies.
Nvidia revealed the outlook during a presentation to investors, as transcribed by Seeking Alpha. While cryptocurrency revenue has been a great revenue driver for the last year, moving forward its contribution to Nvidia’s revenue is going to be “negligible.”
“Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million, and we now expect a negligible contribution going forward,” said Nvidia’s Colette Kress, executive vice president and CFO.
It’s a massive drop and indicative that demand from crypto miners is now pretty much non-existent. We’ve seen during the past three months or so that it’s not so financially viable anymore to mine many cryptocurrencies, forcing miners to sell their GPUs to mitigate losses or just continue with the hardware they've already got. Actual crypto-related GPU sales have been just 18% of Nvidia’s own estimates and this volatile market will no longer be a factor to Nvidia moving forward.
For “the outlook for the third quarter of fiscal 2019, we are including no contribution from crypto in our outlook,” continued Kress. “We believe we’ve reached a normal period, as we’re looking forward to essentially no cryptocurrency as we move forward.”
For anybody planning to buy Nvidia’s upcoming Turing GPUs, this should come as fantastic news. Demand for these graphics cards is going to be coming almost exclusively from gamers which should help keep prices near MSRP. Likewise, we’re seeing currently available GPUs drop to near-normal prices, and we expect this to continue for some time.
Are you glad to see the back of cryptocurrency? Or did you believe it’ll return with a vengeance?