Crypto mining has been an essential feature for the cryptocurrency world since the start of the digital market. But the task of doing the verification of transactions on the blockchain network and storing them on the digital ledger is not an easy one for the hardware used by the miners. The hardware required to perform such task needs to be top notch and well-suited for carrying out such an operation.
Graphical processing unit (GPU) chips provided by Nvidia make the resources required to perform such online transactions and verification on the blockchain network available, and are widely preferred among the community of miners. Although the sale of Nvidia GeForce chips among the community of miners has boosted the company’s overall revenue in the past year, recent developments in the world of cryptocurrencies has resulted in a decline of its sale among the crypto miners. Despite the positive trend shown by Nvidia in its overall sales, according to its fiscal report of the second quarter, the lack of interest from the crypto miners have led the investors to hold back from investing in Nvidia’s stock. As of Friday, the shared of Nvidia were down by 3.7 percent in New York.
Nvidia’s graphic cards have been the top priority for the miners across the world in order to enable themselves to carry out the intensive task of transaction verification. Nvidia’s GeForce chips are preferred by most of the miners across the crypto space. The main feature that such chips provide is to carry out a large number of small calculations at the same time. Such functionalities are well-preferred by the creators of crypto tokens like ethereum and others.
Since last year, the increase in the demand of digital currencies has incentivized different miners across the world to participate in this game of cryptocurrency and in order to do that, Nvidia graphic chips have been leading the arena. The sale of Nvidia graphic cards hit a sudden gold rush from the market of cryptocurrencies since the boom of the digital market. With more and more miners coming in the market, the sale of Nvidia’s chips boosted quite considerably in the past year.
But from the trend shown by the cryptocurrencies since past December, it seems that the market is too unstable at the moment. Concerning the digital market, little acceptance is being shown by institutions across the world as of now. Virtual assets are not considered safe by major business firms across the world. The regulating bodies like the United States Securities and Exchange Commission (SEC) has also shown little acceptance of the digital market in the recent past. All of this has led to the uncertainty that prevails in the market, and crypto miners are now holding back when it comes to digital currencies and investing in hardware. As a result the sale of the graphic cards among the crypto community has declined recently.
Nvidia’s expectation of its sales from the crypto mining community has not been met in the second quarter of 2018. The sales are expected to decrease even further moving forward in time. Sales from cryptominers of about $100 million were expected by the company in Q2 and only $18 million was generated from the market. The demand from the cryptominers has been declining rapidly and will result in future revenue loss from this area.
Besides the loss from revenue from the market of cryptominers, the overall sales of Nvidia cards is still on the rise. Nvidia’s target market of gamers and computer intensive industries is still proving to be beneficial for the company. The fiscal report for the second quarter of 2018 was recently released by Nvidia which boasted the company’s overall growth. Sales have also boosted in the arena of data centers, where the company has managed to convince the users that graphical processing units (GPUs) provides the best solution for most of their concerned problems. Graphic chips provide alternate ways to provide solution for artificial intelligence processing. The sale in the market of data centers has grown by 83% according to the report.
The organization has also been able to maintain its gaming user base, and has successfully kept it users on the track to buy new and improved graphic cards to get the best and realistic results. The revenue in this department has risen by 52% from a year earlier. The organization has also been targeting the automotive industry and has raised its revenue in this arena by 13%.
With interest from the cryptominer community declining, Nvidia’s goal now is to target computer intensive industries, data centers and gaming community. Although its sale from the cryptomining community has tanked, the organization still continues to flourish in other departments and has shifted its focus from the crypto miner community to explore other opportunities.