I’ve found it mystifying as to why Nvidia and AMD, along with analysts have long been silent regarding the impact of cryptocurrency mining on GPU revenue. This despite the widespread reports of graphics card shortages for PC gaming enthusiasts.
Looking over the official earnings reports going back over the last six quarters, I find zero mentions of crypto, blockchain, or mining.
Finally, and just recently, Nvidia reported $289 million in revenue for Q1 2018 related to crypto mining, and then for Q2 2018, a precipitous drop to just $18 million. That amounts to about an 8% swing in total revenue for Nvidia (relative to Q1 2018).
AMD and Nvidia both posted single-digit percentage declines in sequential revenue for their consumer products division. AMD attributed this to a decline in mining-related activity.
There may be understandable reasoning as to why we haven’t been seeing mining-specific sales numbers. In the early days of crypto, miners were primarily consumers buying graphics cards off the shelf, thereby making the distinction between gaming and mining intent very challenging.
Then, larger entities stepped in, buying GPU products en-masse for crypto mining farms. This probably allowed Nvidia and AMD to track sales more definitely.
Whatever the case, the substantial decline in mining-related GPU revenue is certainly notable and a clear sign of saturation as the market value of crypto assets continues to stagnate or decline.
GPU-based mining is known to be a significant energy waster – with more efficient processing solutions emerging that use ASICs – application specific processors purpose-built for mining and other blockchain applications.
Nvidia is now neglecting crypto for future earnings forecasting and guidance – seemingly a wise move.