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Matthew Freilich
For nearly a year, cryptocurrency miners have stolen all the graphics cards could get their hands on. This was a financial advantage for Nvidia and AMD, the leading manufacturers of consumer graphics cards. Both have reported very high gains over the last two quarters.
But Thursday, Nvidia reported financial results for the second fiscal quarter, ending July 29th. The results were overall good, with strong requests for Nvidia products for artificial intelligence and central data applications. However, the question related to the cryptocurrency is crumbled.
"Our revenue forecasts anticipated the specific cryptocurrency products that were reduced to about $ 100 million," said Colette Kress, CFO of Nvidia. "Actual revenues from crypto-specific products were $ 18 million."
The company no longer counts cryptocurrency related sales in the future. "We now expect a negligible contribution," added Kress.
Nvidia's CEO, Jensen Huang, echoed this sentiment. "We are not projecting any encryption in the future," he said.
The story was similar for AMD, which reported its financial results last month. The company reported overall financial results overall, but the "computer and graphics" division saw sales decline three percent compared to the previous quarter, driven by "lower revenues from GPU products in the blockchain market".
The reason is clear: cryptocurrency prices are falling. Bitcoin extraction has long been dominated by specialized ASIC chips, so the most popular cryptocurrency extracted with GPU is ether, the cryptocurrency of the Ethereum network.
The value of Ether dropped from a high of about $ 1,400 in January to about $ 300 today: a decline of almost 80 percent. Litecoin dropped from $ 320 in January to around $ 60 today, a decline of over 80%.
Prices for high-end Nvidia and AMD graphics cards decreased over the same period. Nvidia's GeForce 1080 could recover over $ 800 in January. Today you should be able to find one for less than $ 600. This means that after a year of shortcomings, players should finally be able to buy graphics cards at reasonable prices.
