According to CNBC, Nvidia on November 17 said that sales of CMP chips specifically for crypto mining fell continuously by 60% in the most recent quarter. Sales of this product line are expected to continue to decline in the current quarter. CMP was introduced by the company in March 2021, specifically targeting cryptocurrency miners.
More specifically, the US-based chipset developer’s CMP sales fell from $266 million in the quarter ended August 2021 to $105 million in the quarter ended October 2021. Adding in $155 million in CMP sales from the quarter ending May 2021, Nvidia has totaled $526 million in revenue over the product’s life, but that’s just under 3% of the 19.27 billion total. USD of revenue earned by the company during that period.
Nvidia CEO Jensen Huang hopes crypto mining chips will be used in professional centers
The lack of traction for CMP doesn’t affect Nvidia at all. The company’s shares are up more than 123% to date. According to the earnings report released on November 17, Nvidia’s overall sales increased by 50% on a year-over-year basis. It made $3.2 billion in a quarter from selling graphics cards to gamers and PC makers.
When Nvidia announced CMP, this product was clearly defined as an alternative, giving priority to giving GPUs to gamers over cryptocurrency miners. “We hope CMP will satisfy miners and will be used in professional mining centers,” said Nvidia CEO Jensen Huang.
Nvidia sees gamers as its core market, and believes that GPUs will become a standard component of every cloud server. It won’t necessarily increase the price of CMP when the value of cryptocurrencies is high, instead Nvidia wants to be the main supplier for companies focused on creating a diverse online virtual super world “omniverse”. ” with 3D graphics, Mr. Huang said Nov. 17.
Nvidia has added software to its gaming graphics cards to make them less suitable for cryptocurrency mining. Nearly all GeForce graphics cards include Lite Hash Rate software, in “an effort to target GeForce with gamers.”
However, Nvidia cannot be sure if the spike in graphics card sales is related to the crypto world. “Our GPUs have crypto mining capabilities, although we don’t show how much of an impact this will have on overall GPU demand,” said Nvidia CFO Colette Kress.