Back in April, there was word that a large shift is happening in the cryptocurrency market, and that the demand for graphics cards to mine, would be going on the decline. DigiTimes now reports that this is now starting to hunt at the graphics card players in the industry
Let's face it, both NVIDIA and AMD have been benefitting from the mining craze intensely with huge reported record revenues in GPU sales, but what happens if the demand drops? Well, what goes up, must come down. That's exactly what is happening right now, the BitCoin, for example, is dropping in value fast, reports DigiTimes.
A sudden decline in demand for mining graphics cards in April caused TUL's revenues for the month to drop by a massive 80% sequentially to NT$280 million, the lowest since May 2017. The other Taiwan makers had scored revenues from motherboards, servers and notebooks in the month, making their actual declines in revenues from graphics cards sales hard to figure out.
Earlier, both Nvidia and AMD conservatively estimated that demand for mining graphic cards would slow down and their revenues for the second quarter may decline markedly. Accordingly, industry sources said that supply chain partners may no longer see significant revenue growth in the rest of the year following April 2018 and may even suffer sharp revenue drops.
Although Nvidia and AMD may debut new-generation graphic cards in July, but expensive prices, limited growth in demand from the gaming market, and how long the mining demand will last will significantly affect the revenue and profitability performances of both companies and their supply chain partners, industry sources claim.
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