Nvidia plans to abandon mining graphics card business as revenue drops sharply

Due to the growing demand for high-end graphics cards in the cryptocurrency mining industry, graphics card manufacturer giant Nvidia has seen increasing profits in late 2017 and early 2018. However, due to the recent poor market performance and the lack of demand for graphics cards, Nvidia plans to re-adjust its strategy.

Nvidia’s “heyday”

It seems that Nvidia is about to give up the research and development and production of cryptocurrency mining graphics cards.

Nvidia has seen explosive growth over the past few years, increasing its market value by 68% last year alone, although its stock price fell nearly 8% this week.

Nvidia's biggest competitor AMD's market value has also hit a new high in recent times, with its market value increasing by more than 100% in the last quarter.

Nvidia successfully rode the cryptocurrency boom in November and December last year. Since November 2017, the company's stock price has reached a high of $267 per share.

Bitcoin's rapid surge from $5,800 to $20,000 in just one month has put Nvidia's GeForce series graphics cards in short supply. Neither miners nor dealers want to miss out on this period of cryptocurrency craze, thus creating a buying frenzy.

However, due to the recent decline in the overall market value of the cryptocurrency market, many people's interest has gradually faded, and market sentiment is no longer the same as before, and Nvidia's graphics cards are unexpectedly unsalable. Therefore, both Nvidia and AMD must constantly adjust their business models and plans to adapt to the cryptocurrency bear market.

Bloomberg commented:

Nvidia expects to generate $100 million in sales of mining graphics cards in its second fiscal quarter. In fact, Nvidia's sales during this period were only $18 million, and this part of the revenue is likely to disappear forever in the future.

A future without mining graphics cards

Nvidia CEO Jen-Hsun Huang plans to cut the production budget for cryptocurrency mining graphics cards.

In a conference call yesterday, Huang talked about expanding into new areas and focusing on Nvidia's strengths for the rest of the year.

Despite the cryptocurrency market downturn, our core platform has performed better than expected. We do not plan to continue to promote the mining graphics card business.

Although cryptocurrency mining has helped Nvidia achieve a short-term surge in market value and revenue, the company is still unable to continue to compete with professional mining giants such as Bitmain, whose ASIC mining machines are far more efficient than Nvidia's graphics cards.

Nvidia will continue to capitalize on its strengths, especially in gaming, AI, and data processing, and despite a revenue decline this quarter, the company's future remains bright.