Nvidia bought fewer CMP mining GPUs than it anticipated

Nvidia's Jen-Hsun Huang

(Picture credit score: Nvidia)

Nvidia held an earnings name masking the second quarter of 2021, the place it managed record-breaking revenues, significantly when it got here to gaming (by way of In search of Alpha). Demand for Nvidia’s gaming GPUs continues to outstrip provide, ensuing within the inexperienced workforce managing document gaming revenues of $3.06 billion, up 85% from the identical interval final yr.

Nvidia did launch the RTX 3080 Ti and the RTX 3070 Ti in that point interval, which helps clarify why it is achieved so effectively. We most well-liked the non-Ti variations of each playing cards, however there is not any getting away from the truth that the market is totally determined for graphics playing cards proper now, no matter how good they’re.

Given how good the 30-series is, I can not assist questioning how way more Nvidia may have made if provide wasn’t such an issue. And , if playing cards had been promoting at one thing near their MSRPs. Though if that was the case, then possibly AMD would have had a number of extra playing cards on the market to make this a good battle. Guess we’ll by no means know!

When requested about when the issues with provide would finish, Jensen echoed what different silicon producers have been saying recently: “I might anticipate that we are going to see a supply-constrained atmosphere for the overwhelming majority of subsequent yr is my guess for the time being.”

A sobering reply for certain, though most likely a sensible one. 

Possibly Intel coming into the graphics card market at first of subsequent yr will ease the demand for Nvidia’s GPUs just a little, however there are quite a lot of unknowns in regards to the first Alchemist GPUs so one should not assume the market will immediately shift in direction of it. We’ll have to attend and see how the brand new contender’s {hardware} measures up.

Nvidia GeForce RTX 3080 Ti

(Picture credit score: Nvidia)

Again to Nvidia although, chances are you’ll be questioning what share of that gaming income is made up from folks shopping for graphics playing cards for cryptocurrency mining? It is onerous to completely unpick what these playing cards are being purchased for, though Nvidia has tried to dissuade miners with its Low Hash Fee GPUs.

Nvidia additionally launched its CMP playing cards particularly for miners when it launched these LHR choices, so it will possibly at the least monitor these numbers. Nvidia says it ‘solely’ bought $266 million price of its CMP playing cards although, which is decrease than the $400 million it anticipated to make within the interval.

Provided that the marketplace for crypto hasn’t precisely dried up, that might point out that patrons aren’t too fascinated with playing cards which have restricted resell worth. No gamer goes to desire a CMP card, because it would not actually have a video output. Which means that Nvidia’s try and dissuade miners from shopping for gaming GPUs might not have labored. It will be attention-grabbing to see if Nvidia continues down this CMP and LHR path—LHR GPUs had been not too long ago hacked as effectively, though that would not have affected the second-quarter gross sales.

Regardless, it is nonetheless wanting like a profitable time to be within the graphics card enterprise. One thing that can most likely proceed till inventory returns to regular ranges.

Alan Dexter

Alan has been writing about PC tech since earlier than 3D graphics playing cards existed, and nonetheless vividly recollects having to combat with MS-DOS simply to get video games to load. He fondly remembers the killer combo of a Matrox Millenium and 3dfx Voodoo, and seeing Lara Croft in 3D for the primary time. He is very glad {hardware} has superior as a lot because it has although, and is especially joyful when placing the most recent M.2 NVMe SSDs, AMD processors, and laptops via their paces. He has a long-lasting Magic: The Gathering obsession however limits this to MTG Area nowadays.