Since the launch of NVIDIA’s GeForce RTX 30 series GPUs earlier this year, the company’s focus is on its ability to identify the amount of their products getting into the crypto miner’s hands. NVIDIA is in the initial phases of their investigation on the demand being generated by the miners.
During UBS Global’s TMT conference, NVIDIA’s chief financial officer Ms. Colette Kress expectations from the explosive data center segment. Moreover the CFO also provided some details on the approach taken by NVIDIA to quantify the demand for their products generated by miners during.
Currently, the topic, cryptocurrency miners’ demand for GPUs is the talk of the town. Previously this demand has affected both NVIDIA and AMD. The demand increased due to the increasing trend of mining digital currency.
After the report from RBC Capital stating that the company sold $175 million of cards to the miners, the rumors that NVIDIA has shipped graphic cards to miners once again have intensified again. Moreover, NVIDIA’s earnings report for the fiscal year 2021 also represented that almost 8% of NVIDIA’s gaming revenues are from sales to miners.
This is what Ms. Kress said about the issue:
“So bitcoin mining remember is done almost entirely with ASICs okay. We understand that miners are interested in using GPUs for mining other currencies such ethereum. Recently we heard rumors from our channel partners about the increasing interest. There are a lot of factors that influence mining interests so we’re looking into this with our overall channel partners. I want to make sure that we understand we spent some quality time in terms of getting a better understanding of our overall supply within the channel and continuing to work many angles to have a good understanding of the volumes and where those volumes are in the world. Still not a perfect overall process but we continue…you’re right to get better and better. But it doesn’t necessarily help us understand the use of the overall cards that are in the overall market.”
When she was pressed further by the analyst Tim Arcuri, she had a little more to say:
“Right now we’re just hearing overall rumors about that increased interest. We need to look into this with our overall channel partners at this time.”
The stated figure in RBC’s report for the cards supplied to miners, $175 million worth, is the revenue that NVIDIA reportedly generated in Q2 2019 as per a lawsuit filed against the company by its investor. Whereas the suit stated that NVIDIA has falsely presented $1 billion worth of mining revenue. The case looked quite suspicious but it could not convince the District Judge Haywood Gilliam who stated that there is a lack of proof for NVIDIA portraying crypto revenue as gaming revenue.
Back in 2018, NVIDIA lost $23 billion in market capitalization for the third quarter after the CEO Jen-Hsun Huang accepted that he is not aware of the GPU demand after a drop in the craze of mining.