Recent reports suggest that Nvidia Corp. is expecting to generate good revenue in the third Quarter of 2018. It is despite overall low mining profit. Recently, Bitcoin and other cryptocurrencies mining were facing a slowdown due to low mining profits.
Increase in Sales for Nvidia Corp
This year, the technology company observed a good sales market in gaming, staples, graphics processing units and data centre chips. How much of graphics cards are sold for gaming and mining respectively is still a question unanswered. However, reportedly, the cost of mining one bitcoin is greater than its current market value in several parts of the globe. As for the others, minor profit margins are obtained through the mining process. The market decline has reduced the sales of Nvidia’s graphics cards for mining purposes. However, due to the previous demand for crypto mining ventures, the prices have increased to fulfil the demands of the international gaming community.
Profits in crypto mining
Tesla recently announced its withdrawal from using Nvidia’s chips in their self-driving cars. And this project generated an estimated of $50 million revenue for the company. The CEO of Nvidia, however, claimed that this sum is immaterial to the company. It made $3.21 billion in the first quarter of 2018 out of which $289 million was from crypto mining sales. Agreeing with Huang, Financial analyst Christopher Rolland said,
“While disappointing for Nvidia, we believe this represents less than $50 million of annual revenue and won’t be replaced until 2019.”
Rolland said that according to his Asia graphics processing unit checks, Nvidia data-centre sales are hoped to generate a huge amount of revenue along with the company’s growth in supercomputers field. It powers approximately 19% of the world’s top supercomputers.