Jensen Huang believes cryptocurrencies will remain popular moving forward. In fact, Nvidia’s CEO doesn’t see the craze ending at all. He believes cryptocurrencies are now solidified in the mainstream with a world of opportunities. Huang says blockchain and cryptocurrencies will drive GPU sales for the years to come. However, the CEO mentioned Nvidia doesn’t depend upon the cryptocurrency frenzy to drive sales of its products.
GPU Shortage Continues For Both AMD and Nvidia
Based on GPU sales, Huang is correct in his assessment of cryptocurrencies. Most GPUs remain out of stock in stores and online retailers. Inventory that does become available often sells out within minutes. Otherwise, potential buyers are forced to contend with huge price markups on new and used GPUs. Even the most basic GPU options are sold for nearly double their price, which shows how high demand is for these products.
High GPU demand is affecting both AMD and Nvidia in numerous ways. Neither company is currently able to meet demand for consumer GPU products. Then again, both companies continue to rake in the cash for these sales. The majority of purchasers are cryptocurrency miners rather than gamers that Nvidia and AMD often focus on. Such demand has made it easier for both companies to delay the release of new GPUs as well.
The State Of Cryptocurrencies Today
Through the first months of 2018, cryptocurrencies have been hammered. Various currencies are down over 50% from their 12-month highs. Individual cryptocurrencies have been hit with bad news and scandals. The entire market is down, and the quick descent from December’s highs could have spooked casual investors. Either way, cryptocurrencies will need a big rally in order to recapture earnings for investors.
Then again, low cryptocurrency values haven’t stopped miners from pressuring GPU sales.
Nvidia’s CEO is more than likely correct about cryptocurrencies sticking around in the long run. He also points out gamers, data centers, and self-driving cars power the profits for Nvidia. In the end, cryptocurrencies can’t hurt Nvidia and AMD aside from GPU shortages. The coming years will likely see cryptocurrencies remain popular, albeit with a smaller number of overall currencies. Nvidia will likely expand its portfolio even more to offset the volatile nature of cryptocurrencies as well.
Dil Bole Oberoi
