Nvidia’s Huang: Cryptocurrencies Here to Stay, Will Be an ‘Important Driver for GPUs’
Nvidia company, has never been very transparent about the impact on its business due to mining of bitcoins. But recently it has been noticed that the company is excepting to generate a large revenue from the cryptocurrency market in the near future. The company’s CEO Jensen Huang told to CNBC in a statement that despite the fact that there has been decline in the bitcoin mining and its amid price, they are facing lot of pressure, but still according to him cryptocurrencies are the future of the world. He said-
“Cryptocurrency will be here. The ability for the world to have a very low-friction, low-cost way of exchanging value is going to be here for a long time. Blockchain’s going to be here for a long time and it’s going to be a fundamental form of computing” – Hunag on CNBC
The Graphic Processing Unit (GPUs) were the cards that were used in the computers to mine or create new bitcoins and other altcoins that they have earned from solving the transaction fuelled puzzles and advanced blockchains.
In their fourth quarter of mining the bitcoins the bitcoins prices were also facing a rise in them in the market. The prices were rising higher and higher because of the increase in the demand of the bitcoins in the market against the company’s expectations. But it favoured the company and helped them to gain greater percentage of revenue in comparison to the third quarter of the company, as per the company’s statement.
Though some reports have come up lately stating that the company had successfully gained the revenue up to 34 percent year-over-year. The shares of the company were round 10 percent some hours of their release about the profit earned by them in their fourth quarter according to their report. The company reported EPS of $1.78 on revenue of $2.91 billion, beating analyst expectations of $1.17 per share on $2.69 billion revenue.
The Bitcoin miner have raised a Fundstrat putting a “breakven” price for the BTC mining at $8,000 but the bitcoins price is currently trading below $7,500.
An analyst from Wall Street backed off a little from the optimistic outlook of the company earlier this year but the extreme rise and fall of the prices of the bitcoins cannot be ignored. But that has not made the company belief any less in its business in the cryptocurrency market the statement launched by the company said that “ I expect blockchain, I expect cryptocurrency to be an important driver for GPUs.”
Striving for Position
Nvidia isn’t the only company in the market of cryptocurrency which is striving to acquire a place in the market higher than the other companies. Nvidia is competing against AMD in the bitcoin-mining GPU market in the market share. The market is also expecting a new competitor in the town, which is the Beijing-based Bitmain developing its AISC product and they also mine Ethereum, it is ranked No.2 in the cryptocurrency by the market cap.
Analyst cited in CNBC suggested that the revenue derived from the Etherum-mining comprised of one-fifth and 10% of total sales of Nvidia and AMD, respectively, though the companies have kept the percentage close to its vest. A trio of other companies were also developing Ethereum, ASICs, an analysist report stated. But Nvidia’s CEO Hunag doesn’t seem worried regarding the situation at hand instead he said that-
“The reason why cryptocurrency became such a popular thing on top of our GPUs is our GPUs is the world’s largest installed base of distributed supercomputing,”
Nvidia’s Huang pointed that a diversified portfolio had been prepared for GPUs and the main categories of the drivers is as follows:-
gaming
data center
professional graphics
autonomous capabilities