The new processor designed specifically for Ethereum crypto-mining is a source of growth for Nvidia. As a result, the CMP manufacturer hopes to generate $150 million in revenue in Q1.
Nvidia could have put the Ethereum mining industry at their backs with its strategy. The manufacturer decided to put obstacles in their way. No more question of seeing these miners exploit its GPUs.
Nvidia intends to reserve them for video game players. In order to meet the needs of ETH mining, the manufacturer released a new CMP processor, or Cryptocurrency Mining Processor.
And obviously, the demand is there. Nvidia has indeed just raised its sales forecasts for the first quarter of its fiscal year 2022. Initially, it was counting on a turnover of 50 million dollars.
Finally, it hopes to generate $150 million in revenue over the period, three times more than originally expected. However, the announcement of the new line of CMP processors was only made in February.
The forecast increases are across the board for Nvidia, however. The pandemic pulls more widely its sales of graphics processors. And the manufacturer thus expects a quarterly turnover of more than 5.3 billion dollars.
So Nvidia appears to be winning on both counts, gamers and miners. And the latter have indeed every interest to equip themselves now. The price of Ether has risen sharply since the beginning of the year.
Over one year, the price of ETH has risen by more than 1300%. In just a few days, the price of the 2nd largest cryptocurrency in terms of capitalization established two new ATHs, the latest of which was on April 13 at over $2,200.
Yet, is investing in computing power still of interest to miners? The Ethereum blockchain will eventually migrate from Proof-of-Work to a Proof-of-Stake consensus.
However, the complete switch to ETH 2.0 will still take some time. Ethereum miners may therefore still find it interesting to increase their computing capacities to benefit from the current Ether prices and high trading fees.
In fact, this is the current trend. Ethereum’s hashrate, which measures the total computing power used to mine and process transactions, is at historic highs.