Virtual currency mining activities have been expanding since the bull run that the cryptocurrency market experienced back in 2017. Cryptocurrency mining companies and computer chip manufacturers registered important returns after selling a huge number of GPUs and mining devices.
But after the bear market experienced this year, some companies reduced their expectatives for the future. However, Nvidia’s revenue for the second and third quarter will likely increase. This is what Factset, a financial data firm says.
Nvidia Will Register Increased Revenue
At the moment, the growing revenue that Nvidia will experience will be related to graphic cards that are used by gamers and also by crypto miners. Additionally, Nvidia sells processors for self-driving cars.
The yearly revenue of the company’s graphic cards is projected to be around $1.75 billion dollars, representing an increase of 50% more than during previous years. The data-center earnings for 2018 are expected to increase as well over 78% up to $740 million dollars.
C.J. Muse, an important senior equity research analyst at Evercore, said that data center remains an area of strength for Nvidia.
About the topic, Mr. Muse commented:
“We believe concerns around a likely fall off from cryptocurrency-driven Ethereum GPU mining strength are largely exaggerated, and Nvidia will likely power through any tough compares from cryptocurrency-driven tailwinds.”
Moreover, 10% of Nvidia’s revenue during the first quarter came from the cryptocurrency mining industry, that as mentioned before, grew exponentially.
Nvidia is not so confident about the future and how it is going to develop. The numbers represent a 115% increase compared to the last quarter, but the firm expects the revenue to drop 66% for the second quarter of the year.
But this is not the only chip manufacturer that announced a reduced revenue from the cryptocurrency mining sector. We are talking about Advanced Micro Devices (AMD),a competitor, also trying to position itself in this market.
Bitmain, the most important ASIC chip manufacturer in the market – commonly known as Bitcoin miners – is working in other areas trying to reduce its dependency to the crypto market. The field of Artificial Intelligence is giving opportunities to Bitmain to increase its revenue from other activities and be prepared in case the crypto market remains in a bear trend for a longer period of time.