Since crypto-currencies and their prices at the end of 2017 exploded, GPU manufacturers like AMD and Nvidia achieved thanks to crypto-currency customers, who buy graphics cards for Mining crypto currencies, massive sales.
Since this year’s market Crash, the demand for graphics cards, not more fell, however, as the Mining is now so lucrative.
According to an AMD-report the total revenue for the first quarter of 2018 (Q1 2018) amounted to 1.65 billion U.S. dollars, of which more than 10 percent of sales to crypto-currency Mining. During his conference call on Thursday, NVIDIA reported that it earned in the same period, more than 289 million dollars in sales to the crypto-miners – with a total turnover of 3.21 billion U.S. dollars.
Nvidia’s Chief Executive Officer, Jensen Huang explained the reason for the surprisingly high turnover, the company has achieved:
“Crypto-miners have bought in the quarter, many of our GPUs, and the prices have risen as a result. I don’t think that many players were able to buy the new GeForce … The reason why you [GPUs] have bought is not Playing for the Computer, while you play, while you are in school, at work or in bed, you turn on the graphics cards, and a little Mining. Nothing wrong with that.“
Both companies predict, however, that you will be significantly less revenues in the second quarter. The reason for this had nothing to do with the weakening of the crypto-currencies.
Recently published Bitmain, the world’s largest ASIC-Equipment-manufacturer (ASIC stands for Application-Specific-Integrated-Circuit, an extremely efficient Hardware solution for the Mining of crypto-currencies) is a new product that could make all the existing GPU manufacturer unemployed. It is the Antminer E3, also known as ASIC Miner for Ethereum. Since Ethereum is the most mined crypto currency, it will make this product slower GPU Miner will probably be useless.
Nevertheless, AMD’s CEO, Lisa Su sees this incoming threat, as something that is for the company “healthy”, because it does not recognize that “crypto currency Mining” is the only use case for GPUs.
“I think that the Blockchain infrastructure is here to stay. Also, I believe that there are numerous other currencies . There are numerous applications that use the Blockchain technology. We see no significant risk that used GPUs on the market. I think what you will find, that, firstly, there are a number of different currencies, and there are many of these users, the GPUs in these days for several application cases to buy, for both commercial purposes as well as for ordinary consumers.“