Jon Peddie Research estimates that discrete GPU sales could generate $54 billion in revenue by 2025, a sharp jump from last year's revenue of $23.6 billion thanks to the growth in video gaming. A short-term disturbance in the GPU market's demand-supply dynamics is unlikely to change the long-term picture. So, even if gaming enthusiasts decide to buy a preowned graphics card from miners - which isn't always a good idea as they may have been subjected to long hours of operation and could be prone to wearing out faster - NVIDIA will still have enough end-market demand to fill.Ĭonsider this: Only 15% of NVIDIA's installed graphics card user base of 140 million is running the RTX series cards. Additionally, reports indicate that NVIDIA is already working to increase the production of the aggressively priced RTX 3060 card to meet strong demand. That's because the demand for its latest cards is so strong that NVIDIA has reportedly decided to cut production of the old-generation RTX 2060 graphics card in half to increase the supply of the RTX 30 series cards. However, long-term investors have no reason to worry, despite these developments that have caused NVIDIA pain in the past. As a result, cryptocurrency miners in China are offloading their powerful graphics cards into the second-hand market, according to a report by PC Gamer. Etherscan, an Ethereum analytics platform, recently pointed out that the GPU power used for mining the cryptocurrency has dropped 19% in the past month. That's not surprising, as miners reportedly bought a fourth of the total graphics cards sold in the first quarter of 2021 to mine cryptocurrencies, according to Jon Peddie Research.īut a drop in the price of Ethereum ( ETH -1.48%) and China's crackdown on Bitcoin ( BTC -1.28%) have hamstrung the demand for graphics cards used for mining operations. However, lower demand from cryptocurrency miners seems to be the biggest growth driver behind the correction. Graphics processing unit (GPU) prices have started pulling back from their astronomical highs of late due to several factors. NVDA data by YCharts Graphics card prices are coming down as miners start dumping GPUs However, ominous signs are emerging in NVIDIA's biggest business, video gaming, that could give investors déjà vu, harkening back to a regrettable period in the company's history. Shares of the graphics specialist have jumped about 500% in just over two and a half years thanks to terrific growth in the video gaming and data center businesses. NVIDIA ( NVDA -2.39%) has sizzled on the stock market since the beginning of 2019.
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