NVIDIA On Crypto Mining Demand: We're Looking Into Rumors With Channel Partners

NVIDIA Corporation's headquarters in Santa Clara, Califronia are a masterpiece in parametric pattern - created possibly past using the fleck designer'southward own GPUs. More on Officesnapshots.com

Chip designer NVIDIA Corporation is in the early stages of investigating the extent of the demand for its products originating from cryptocurrency mining operations. NVIDIA launched its GeForce RTX xxx series graphics processing units (GPUs) earlier this year, and following the launch, all optics were on the company's ability to quantify what extent of its products were falling into miners' hands.

On this front, NVIDIA's main financial officer Ms. Colette Kress provided some details of her company's approach towards quantifying the extent of the need for its products from miners. Her comments came during UBS Global'due south TMT conference, during which the executive touched on a diverseness of topics which as well included her company's expectations from the explosive data centre segment.

NVIDIA CFO Cites Inadequate Knowledge Of GPU Finish Utilise Every bit Difficulty In Determining Crypto Demand

The topic of cryptocurrency miners' demand for GPUs is a hot 1 in the tech industry since this demand has severely hurt both NVIDIA and its smaller rival Advanced Micro Devices, Inc (AMD) in the by. This demand, which spurred alongside the craze of 'mining' the digital currencies resulted in both companies witnessing excessive demand for their products; a demand which then collapsed once the frenzy for creating cryptocurrency was over and the companies were left with severe inventory gluts.

Rumors of NVIDIA having shipped products to miners again intensified subsequently a written report from RBC Capital indicated that the company sold $175 one thousand thousand of cards to the miners. Every bit we pointed out in our coverage of this report, this represents roughly 8% of the company's gaming revenues during its third quarter of the fiscal year 2021.

A miner in Prc stands next to the cooling fans in his Bitcoin mine in China's Sichuan province in 2016. (Image Credits: Chinafile)

When asked by analyst Tim Arcuri nigh her company'southward insight into the mining demand, especially that stemming from bitcoin miners, Ms. Kress stated:

"So bitcoin mining call back 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 nosotros're looking into this with our overall channel partners. I want to make certain that we sympathise we spent some quality time in terms of getting a amend agreement of our overall supply inside the channel and continuing to piece of work many angles to have a proficient understanding of the volumes and where those volumes are in the world. Still not a perfect overall procedure but we go along…you're right to get amend and better. But it doesn't necessarily help united states of america empathise the apply of the overall cards that are in the overall marketplace."

When pressed further, the executive had little to say except for:

"Right now we're but hearing overall rumors nigh that increased involvement. We need to await into this with our overall aqueduct partners at this time."

Table compiling the results of Pryson Group'south study showing NVIDIA's alleged misclassification of cryptocurrency product revenue. Image is taken from page 10 of Case No. 4:18-cv-07669-HSG filed in the The states District Courtroom for the Northern District of California Oklahoma Division.

RBC'south stated figure of $175 million worth of crypto demand from miners is precisely the revenue that NVIDIA had allegedly earned in Q2 2019 from the products according to a lawsuit filed confronting the visitor past investors. While scandalous in nature, the adjust failed to impress District Guess Haywood Gilliam who stated that the accommodate's claim of NVIDIA falsifying gaming revenue every bit crypto acquirement lacked bear witness to dorsum its exclamation. The suit had suggested that NVIDIA had misappropriated roughly $1 billion in acquirement from mining products.

NVIDIA lost a staggering $23 billion in market place capitalization in 2018 when during its earnings for the third quarter, C.Eastward.O. Jen-Hsun Huang admitted that he had picayune clarity on the state of demand for GPUs in the wake of a driblet in mining enthusiasm.