Nvidia’s CFO says the company could restart its line of mining-specific graphics cards if demand from cryptomint miners increases.
Gaming hardware giant Nvidia has addressed the continuing shortage of its new RTX 3000 product line after high demand from gamers and, to a lesser extent, crypto miners, raised prices and reduced availability.
Nvidia’s Chief Financial Officer Colette Kress said the company did not BitQT have good visibility of how much demand was coming from cryptominters alone, but did not believe it was a large part of the business at this time.
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That’s despite reports from some Ether miners (ETH) who are building platforms consisting of 78 of Nvidia’s Geforce RTX 3080 graphics cards, which are estimated to generate net profits of USD 122,000 per year for their owners.
Kress suggested that any future increase in demand from miners could present a good opportunity to restart the company’s CMP product line. CMP refers to a range of Nvidia graphics cards created specifically for crypto coin mining, which are shipped without the unnecessary screen outputs for the task at hand.
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Speaking at the 19th annual J.P. Morgan Tech/Auto Forum on January 12 through Seeking Alpha, Kress told an audience of investors that if the company were to meet any demand from potential miners, they would consider making more mining-specific graphics cards.
„So, in short, if the crypto demand starts or if we see a significant amount, we can also take that opportunity to restart the CMP product line to address the ongoing mining demand,“ Kress said.
The CFO believes that most of the demand still comes from a user base primarily focused on games, adding that demand for games alone has exceeded the company’s supply capacity.
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Kress said that crypto coin mining was one of the many unique applications resulting from the programmable nature of Nvidia’s cards and that it had helped drive market growth in the past:
„Yes. So, cryptomoney is interesting. So, as you know, GPUs have been programmable for many, many years, and they allow a constant discovery capability for new applications to use GPUs in general, and that has driven our overall growth in the market. Kryptonite mining is one such application.
According to Kress, Nvidia’s supply capacity will remain down until at least the beginning of the second quarter, and revenues are expected to remain stable until then.