Nvidia Corporation is preparing to restart the production line of mining-specific graphics cards if the demand for such hardware increases from cryptocurrency miners.
Nvidia Corporation is a multinational technology company based in California, USA. This company designs and produces hardware equipment and is a well-known brand in the gaming industry. Now, Nvidia has confirmed that the demand from cryptocurrency miners has put the production line of its new RTX 3000 product under pressure, hardware equipment that is already in high demand from gamers. This growing demand from users has resulted in a shortage, causing less availability and higher market prices.
Colette Kress, Nvidia’s chief financial officer, said the firm didn’t anticipate the growing demand from cryptocurrency miners. However, she believes at this time, the big part of the business is still the great demand from gamers and not cryptocurrency miners.
On the other hand, some reports show the high consumption of Nvidia’s product in the crypto mining business. For example, some Ether miners have constructed rigs comprised of 78 of Nvidia’s Geforce RTX 3080 graphics cards, with an estimated net profit of $122,000 per year.
Considering the growing demand from crypto miners, Kress said that any future rise in demand from this particular community would be a good opportunity for Nvidia to restart its CMP product line. CMP is a line of Nvidia graphic cards specially designed for cryptocurrency mining. They are designed without the display outputs that are unnecessary for mining purposes.
Moreover, during the 19th Annual J.P. Morgan Tech/Auto Forum Conference on Jan. 12, she said that the company would plan for manufacturing more graphic cards specially designed for mining purposes if the demand from the crypto miners’ community rises.
“So, in summary, if crypto demand begins or if we see a meaningful amount, we can also use that opportunity to restart the CMP product line to address ongoing mining demand,” said Kress during the conference.
She mentioned that the main part of the business is still derived by the gaming industry, and the demand from gaming users outpaced the company’s supply capacity.
Kress also said that the programmable nature of Nvidia’s hardware resulted in many unique applications of their cards, including cryptocurrency mining, which helped the market growth in the past:
According to Kress, Nvidia’s supply capacity would remain diminished until at least the start of Q2, and revenues are expected to remain unchanged until that time.