Nvidia held an earnings name overlaying the second quarter of 2021, the place it managed record-breaking revenues, notably when it got here to gaming (by way of Seeking Alpha). Demand for Nvidia’s gaming GPUs continues to outstrip provide, ensuing within the inexperienced crew managing file 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’s carried out so properly. 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 completely determined for graphics playing cards proper now, no matter how good they’re.Given how good the 30-series is, I am unable to assist questioning how rather more Nvidia might have made if provide wasn’t such an issue. And you already know, if playing cards have been promoting at one thing near their MSRPs. Although if that was the case, then possibly AMD would have had just a few 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 these days: “I’d anticipate that we are going to see a supply-constrained setting for the overwhelming majority of subsequent yr is my guess in the meanwhile.”A sobering reply for certain, though most likely a practical one. Maybe Intel coming into the graphics card market firstly of subsequent yr will ease the demand for Nvidia’s GPUs a bit of, however there are quite a lot of unknowns concerning the first Alchemist GPUs so one should not assume the market will immediately shift in the direction of it. We’ll have to attend and see how the brand new contender’s {hardware} measures up.(Image credit score: Nvidia)Back to Nvidia although, you could be questioning what share of that gaming income is made up from folks shopping for graphics playing cards for cryptocurrency mining? It’s laborious to completely unpick what these playing cards are being purchased for, though Nvidia has tried to dissuade miners with its Low Hash Rate GPUs.Nvidia additionally launched its CMP playing cards particularly for miners when it launched these LHR choices, so it can at the least monitor these numbers. Nvidia says it ‘solely’ sold $266 million value of its CMP playing cards although, which is decrease than the $400 million it expected to make within the interval.Given that the marketplace for crypto hasn’t precisely dried up, that would point out that patrons aren’t too keen on playing cards which have restricted resell worth. No gamer goes to need a CMP card, as it does not actually have a video output. Meaning that Nvidia’s try and dissuade miners from shopping for gaming GPUs might not have labored. It’ll be fascinating to see if Nvidia continues down this CMP and LHR path—LHR GPUs have been lately hacked as properly, though that would not have affected the second-quarter gross sales.Regardless, it’s nonetheless wanting like a profitable time to be within the graphics card enterprise. Something that can most likely proceed till inventory returns to regular ranges.
Nvidia sold fewer CMP mining GPUs than it expected
