Analysts surveyed by FactSet suggest that Nvidia this quarter will witness a revenue growth, despite the decline in mining operations for Cryptocurrency, MarketWatch reported on August 10. The alleged increase is due to the high demand for gaming equipment and data centers.
With sales from the gaming industry, Nvidia is expected to increase 47% to $ 1.75 Billion per year, while revenues will rise from data centers with a 78 % growth to $ 740 million.
Evercore analyst, C. J. Muse agrees with other analysts and says, “Data center / AI continue to be a strong point, especially as regards to the advantage of a new round of play that favors Nvidia.”
Muse added, “We believe that concern about a likely Ethereum GPU mining is greatly exaggerated, and Nvidia is likely to have all the harsh comparisons from the tailwinds that are cryptocurrency-driven.
In May, Nvidia announced that it had generated $289 Million through processor sales in the cryptocurrency market. Nvidia’s crypto sales in the first quarter accounted for more than 9% of the company’s total revenue of $3.2 Billion.
Cryptomining chips accounted for 76% of original equipment manufacturer (OEM) sales, an increase of 115% over the earlier quarter. Nvidia, however, indicated that sales in the cryptocurrency market would drop by two-thirds in the Q2.
In July, the company’s projections were demonstrated, when the price of dedicated graphics processors fell with dropping prices in digital currency markets. Nvidia’s main opponent, Advanced Micro Devices (AMD), revealed in April that 10% of the company’s revenue was allocated during the quarter to mining or blockchain, although company CEO Lisa Su said, “Blockchain was bit distraction for some time.”
The drop in the price of mining equipment did not prevent manufacturers from producing new mining equipment for the cryptocurrency. In May, ASUS announced the launch of “second generation” of the crypto mining motherboard, which will be launched in North America early in the Q3 of 2018.