The high demand for Nvidia graphics card used for cryptocurrency mining has seen a steep decline since the end-of-year bull run last year. Nvidia’s GeForce chips were near impossible to buy as crypto miners continued to purchase them off the market for nearly 9 months straight. The popularity rise of Ethereum and other altcoins were the driving force, which in turn marked up prices and caused shortages for Nvidia.
Nvidia predicted about $100 million in sales brought from cryptocurrency miners in their fiscal second quarter but in reality sales totaled only $18 million for the period. The company predicts the demand will continue to dwindle. While other aspect’s of Nvidia’s bottom line are doing great and continue to show growth, the increase in demand and sales due to crypto miners is not sustainable and has skewed metrics of Nvidia’s revenue valuation.
“Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million, and we now expect a negligible contribution going forward,” the biz reported during its the earnings call with analysts on Thursday.
The decline of crypto miners will most likely have minimum effects for Nvidia as the demand for GPU cards still remains high from popular games like Fortnite and PUBG. Gamers can rejoice as the loss of demand from miners will stop the scarcity and price mark up of the GeForce graphics card. The cryptocurrency market has been experiencing a 7 month long bear market which has drawn interest away from crypto in general. Many are seeing the lul in crypto prices as a good time to accumulate mining gear at a discount considering the demand will most likely increase the next bull run.