During this week it has become clear that one of the biggest graphics cards manufacturer Nvidia, has overestimated the demand for its GPUs. And as mining decreases in popularity, so does the interest in Nvidia’s products.
Reportedly the American company took back 300,000 GPUs (worth over one hundred million U.S. dollars) from one of its top Asian OEM partners and now the release of a new generation of graphics cards (the 11 series) will be postponed for ”a long time from now” as stated by Jenson Huangthe, CEO of the company.
Nvidia expects revenues from cryptocurrencies to fall considering the decrease in mining, which in its turn is the result of the decrease of the cryptocurrency prices. In Q1 thecryptocurrency industry brought Nvidia almost 10% of its overall revenue ($289 million). Also, Huang is not optimistic about profits from the cryptocurrency industry in Q2, admitting earlier that the company is likely to switch their focus toward the gaming industry once again.
“We’re working really hard to get GPU down to the marketplace for thegamers and we’re doing everything to advise retailers and system builders toserve the gamers.”
This decline in GPU interest from the mining community can also be attributed to the growth in popularity of the new ASICs (Application specific integrated circuits), which is a far more efficient wayto mine cryptocurrency.