Thursday, 5 Oct 2023
Business Technology

Despite The Decline Of Crypto Mining, Nvidia Will Record Higher Sales This Quarter

Analysts surveyed suggest that Nvidia this quarter will witness revenue growth, despite the decline in mining operations for Cryptocurrency i.e., Crypto Mining, MarketWatch reported on August 10. The alleged increase is due to the high demand for gaming equipment and data centers.

Despite The Decline Of Crypto Mining, Nvidia Will Record Higher Sales This Quarter

With sales from the gaming industry, Nvidia to increase 47% to $ 1.75 Billion per year, while revenues will rise from data centers with a 78 % growth to $ 740 million.

Evercore analyst, C. J. Muse agrees with other analysts and says, “Data center / AI continue to be a strong point, especially as regards the advantage of a new round of play that favors Nvidia.”

Muse added, “We believe that concern about a likely Ethereum GPU mining, and Nvidia is likely to have all the harsh comparisons from the tailwinds that are cryptocurrency-driven.

In May, Nvidia announced that it had generated $289 Million through processor sales in the cryptocurrency market (Crypto Mining). Nvidia’s crypto sales in the first quarter accounted for more than 9% of the company’s total revenue of $3.2 Billion.

Crypto Mining chips accounted for 76% of original equipment manufacturer (OEM) sales, an increase of 115% over the earlier quarter. Nvidia, however, indicated that sales in the cryptocurrency market would drop by two-thirds in Q2.

In July, the company’s projections were demonstrated, when the price of dedicated graphics processors fell with dropping prices in digital currency markets. Nvidia’s main opponent, Advanced Micro Devices (AMD), revealed in April that 10% of the company’s revenue was allocated during the quarter to Crypto Mining or blockchain, although company CEO Lisa Su said, “Blockchain was bitted distraction for some time.”

The drop in the price of mining equipment did not prevent manufacturers from producing new mining equipment for the cryptocurrency. In May, ASUS announced the launch of the “second generation” of the crypto mining motherboard, which will be launched in North America early in Q3 of 2018.

that’s correct. According to analysts polled by FactSet, Nvidia saw increased revenue this quarter despite the decline in cryptocurrency mining. The purported increase is due to strong demand for gaming devices and data centers.

Nvidia’s graphics cards for both gaming and cryptocurrency mining. However, the decline in cryptocurrency mining has led to a decrease in demand for these cards. This has caused Nvidia’s stock price to decline in recent months.

Despite the decline in cryptocurrency mining, Nvidia saw increased revenue this quarter. This is because demand for gaming devices is still strong. The global gaming market to grow by 10% in 2023, and Nvidia is a major supplier of graphics cards for gaming devices.

In addition, Nvidia is also seeing strong demand for its products from data centers.

Data centers are using Nvidia’s graphics cards to power artificial intelligence (AI) and machine learning applications.

The demand for AI and machine learning to continue to grow in the coming years,

which will benefit Nvidia.

Overall, Nvidia saw increased revenue this quarter despite the decline in cryptocurrency mining. This is due to the strong demand for gaming devices and data centers.

Here are some other factors that could contribute to Nvidia’s increased revenue this quarter:

  • The release of new gaming GPUs, such as the RTX 4090 and RTX 4080.
  • The launch of new AI and machine learning products, such as the Nvidia Grace CPU.
  • The growth of the cloud gaming market.
  • The continued adoption of cryptocurrencies.

It is important to note that these are just estimates, and the actual revenue that Nvidia reports could be different.

However, the analysts’ expectations suggest that Nvidia is still a strong company with a bright future.

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