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Nvidia's crypto boom is coming to an end, he warned investors ahead of a conference call following the first quarter earnings report.
"Cryptocurrency demand was stronger than expected again, but we were able to do most of it with crypto-specific GPUs, which are included in our OEM business at $ 289 million," said Nvidia CFO Colette Kress on the call.
We could protect the vast majority of our limited-edition game GPUs for players. In Q2, we expect the cryptospecific sales to be about one third of the Q1
A steep drop in prices since then, coupled with a possible shift in ethereum rules and the proliferation of mining-specific computers called ASICs, has dampened part of Nvidia's new demand for chips.
"Crypto Miners bought a lot of our GPUs during the quarter and it shot up prices," said CEO Jensen Huang, "and I think that many of the players could not shop in the new GeForce as a result. And so we start to see prices fall. "
Other segments, especially games, The success of Fortnite and PUBG is truly incredible," Huang said. "The success of Fortnite and PUBG is as good as incomprehensible, "said Huang. "These two games are a combination of Hunger Games and Survivor captured the imagination of players around the world and we saw the uptick and we saw the demand for GPUs from around the world."
Despite the crypto-slowdown, there may not be cause for concern as the entire industry faces a revolution.
"We have argued that the computer industry is experiencing a tectonic shift every 15 years and that NVDA has 10-15 years of positive demand trends based on its position as a leading provider of parallel processors in high-growth markets such as PC gaming, Artificial Intelligence and blockchain applications like cryptocurrencies, "analyst Mark Lipacis told his clients.
Nvidia shares slipped 2% overnight overnight earnings.