Nvidia Set for Gains Amidst Crypto-Mining Slump
Although cryptocurrency mining has been slower as a result of Bitcoin and several other digital currencies dropping in value on the market and struggling to make proper gains around the world, Nvidia, a leading tech-company, is set to produce profitable income during the third quarter of this year.
As of now, Nvidia is performing strongly in its mainly-focused market which is the gaming industry. The company’s graphics cards are selling at incredible rates as well computer chips for data centers. Pinpointing the exact number of cards that have been sold for gaming purposes instead of cryptocurrency mining although recent data has revealed that successfully mining one BTC and its cost is far better than the current value on the market in several locations globally.
Even with the current condition of the market, with a severely impacted crypto-mining scene, Nvidia’s sales do not seem to be declining and are maintaining their highly profitable sales for the global video game environment. Additionally, graphics cards have spiked in price once again as a result of cryptocurrency mining demand. The company’s supply of Nvidia chips used by Tesla in their automated vehicles has also been struck recently, following the announcement by the company that it will no longer utilize Nvidia’s hardware.
The chief executive officer of Nvidia, Jensen Huang, has stressed that the company does not rely on Tesla for its general income, having previously earned over three billion USD during the first quarter of this year alone. Around nine percent of that profit is attributed to cryptocurrency mining. Christopher Rolland, an analyst from Susquehanna backed the CEO’s statements by saying that although this is unfortunate for the company, referring to Tesla’s previous announcement, Tesla has only contributed to around $50M of Nvidia’s overall profit and the recent loss will not be made up for until next year.
The analyst also mentioned that sales from the company’s data centers are expected to result in significant amounts of profit for Nvidia in addition to the supercomputer industry, with Nvidia responsible for powering almost 20 percent of the leading 500 supercomputers globally through its processor chips.
Another analyst, C.J Muse of Evercore, also believes that Nvidia’s primary business system will seamlessly support the company during any period of income or sales declining as part of their digital mining operations, stating that the new GTX11, a next generation card will draw in important and substantial profit for the company during the next couple of years. According to Muse, artificial intelligence and the company’s data centers are especially robust in performance.