For the first quarter of 2018 Nvidia miners earned $289 million

The largest developer of graphics architectures of Nvidia announced that in the first quarter of 2018 sales of graphics processors (GPU) for the crypto currency miners amounted to $ 289 million, or 9% of total revenue of the Corporation for this period of $ 3.21 billion. Soon, however, Nvidia may face a drop in sales in the cryptocurrency sector, as new ASIC miner for Ethereum will be forthcoming
on the market, and in the autumn it is planned the transition of this crypto currency for a combined PoW/PoS mining.

In April, AMD announced that sales of devices for the market of cryptocurrencies and blockchain was about 10% of its total profit in the first quarter of this year.

CEO of Nvidia Jensen Huang (Huang Jensen) explained that «crypto currency miners bought a lot of our GPU this quarter, and this has led to higher prices». Huang added that this high demand from cryptocurrency industry, which led to higher prices for graphics processors, has created problems for other buyers, such as gamers who basically buy the latest model cards GeForce. Earlier Nvidia has already mentioned about this problem. In January it became known that the company turned
to retailers of their cards with a request to give priority to gamers and not to the crypto currency miners.

While sales of devices for cryptocurrency miners amounted to slightly less than one-tenth of the company’s revenue in the first quarter, sales of chips for mining amounted to 76% of profits in the OEM direction of the company (selling components to other manufacturers under a different brand name.) Income from the sale of OEM components grew by 115% compared to the previous quarter.

The decline in demand on the GPU

Despite the relatively good performance in the first quarter, the forecast for the future looks disappointing. CFO Colette Kress (Colette Kress) announced that it expects to reduce this income by two thirds in the second quarter to approximately $ 100 million.

In the past, Huang said that the cryptocurrency market is not a growth factor for the company, but only gives «a nice supplemental income», which now accounts for 9% of revenues. For the main growth factors responsible markets of video games, graphical visualization, data centers and unmanned vehicles.

During a conference call with investors Kress also announced that gamers who in the past quarter were pushed out of the market due to overpricing and lack of devices due to the high demand from the miners, was able to buy the latest graphics processors at much more reasonable prices.

In July last year it was reported that AMD and NVIDIA have earned
on miners nearly a billion dollars, but in March, AMD announced that fears of falling sales of graphics cards due to the lower demand of the miners.

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