Crypto Miners Go Cold On GPUs, But NVIDIA Predicts Gamers Will Pick Up The Slack

Image: NVIDIA

A decade ago, no one would have guessed NVIDIA's booming business would be selling hardware to data centres and that revenue from cryptocurrency miners would be on the decline. Or, you know, that cryptocurrency is even a thing. Yet, here we are in 2018, with NVIDIA's latest investor update covering these very issues.

NVIDIA CFO Colette Kress told investors this week that "cryptocurrency-related revenue [should] fall 65 percent", according to a story by Reuters' Sonam Rai and Stephen Nellis.

This represents a drop from $US289 ($383.2) million to $US100 ($132.5) million in annual revenue from the segment.

What's interesting is that NVIDIA revealed cryptocurrency figures at all, something the article states it has never done previously. That $US289 million is about nine per cent of the company's $US3.2 ($4.42) billion revenue.

But NVIDIA is confident the miner's loss will be the gamer's gain:

Revenue from Nvidia’s best-known business of gaming chips rose 68 percent to $1.72 billion, beating analysts’ average estimate of $1.65 billion, according to Thomson Reuters I/B/E/S.

“At the core of it, gaming is strong,” Chief Executive Jensen Huang told investors on the conference call. “The pent-up demand is quite significant and I’m expecting the gamers to be able to buy new GeForces pretty soon.”

Amazon, Microsoft and Google have been buying up big, spending a hefty $US701 ($929.3) million on NVIDIA products:

Revenue from Nvidia’s data center business ... rose 71 percent to $701 million. That missed targets of some analysts including Deutsche Bank, although it topped the Factset consensus of $656 million.

So it's crypto out, cloud and gaming in. Hopefully that means more affordable prices for GPUs... but don't hold your breath.

Chipmaker Nvidia sees fewer crypto miners, more gamers in future [Reuters]


Comments

    Unless there is new GPU's, I doubt it.

    This is what I hate about large corporations with investors etc... The disillusion that something will keep growing and getting bigger. "Oh the miners are stopping their GPU purchasing craze... surely the gamers will now step in."

    Would that be the same gamers that Nvidia has price gouged the last couple of years due to the miners buying all the cards up? Sure Nvidia.. keep telling your investors that. Not to mention most PC gamers already have the current generation of cards. You'll need to release the 11 series for them to come crawling out of the wood works.

      Nvidia's prices haven't changed throughout, only availability. Retailers were the ones price gouging, Nvidia asked several times that they not inflate prices and prioritise sales to gamers instead of crypto miners.

        Whilst I agree, there is nothing stopping enforced MAP pricing, don't sell at MAP, you lose cards.

        The paintball industry of all things does this, mostly to promote under pricing, but does the same for over pricing.

          They can't enforce MAP pricing in Australia. They can only recommend it.

          As per the ACCC:

          "A supplier may recommend that resellers charge an appropriate price for particular goods or services but may not stop resellers charging or advertising below that price."

          It is illegal for suppliers to:

          put pressure on businesses to charge their recommended retail price or any other set price, for example by threatening to stop supplying to the reseller
          stop resellers from advertising, displaying or selling goods from the supplier below a specified price.
          It is also illegal for resellers to ask their suppliers to use recommended price lists to stop competitors from discounting. In most cases, a supplier may specify a maximum price for retail.

          By threatening to take away something, imposing a penalty etc, they would be risking likely breaking the law.

            Most manufacturers get around this by saying you can't advertise underneath, without limiting selling (i.e. ask us for a deal).

            Dyson is a big one with enforcing MAP in advertised prices in Aus.

              Indeed. As with all laws theres always a creative way around it.

            What I'm reading there is you can't stop resellers for selling under the RRP, but you can stop them from selling for more?
            In most cases, a supplier may specify a maximum price for retail

              Primarily they cannot enforce unfair repercussions, imposing penalties etc.

    GPU makers have been gouging gamers since the inflation started, and 2 years later they expect people to only just start paying MSRP? FCK

    Last edited 13/05/18 4:17 pm

    Be nice if they stopped price-gauging, the 1070 I wanna buy is a good $150 more expensive than it was 6 months ago. Drop your prices back to where they were or before new GPUs are released and i'll buy one.

    the market is fucked atm... ive been trying to buy a 1060 for my brother for months. i got a 1070 STRIX ROG card for less money like a year and half ago...

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