Gaming hardware giant Nvidia has addressed the persistent shortage of its new RTX 3000 product line following high demand from gamers, and to a lesser extent cryptocurrency miners, pushing up prices and reducing availability.
Nvidia Chief Financial Officer Colette Kress said the company didn’t have a good idea of how much demand came exclusively from cryptocurrency miners, but she doesn’t believe it makes up much of the business at this point.
That is despite reports of some ether (ETH) miners who build oil rigs made up of 78 of Nvidia’s Geforce RTX 3080 graphics cards, which are estimated to bring their owner a profit of $ 122,000 per year.
Kress did suggest that future spikes in miners’ demand could be a good opportunity to restart the company’s CMP product line. CMP refers to a range of Nvidia graphics cards made specifically for cryptocurrency mining, which are sent without the display outputs that are not needed for the job in question.
Speaking at the 19th Annual JP Morgan Tech / Auto Forum Conference Jan. 12 via Alpha search, Kress told an audience of investors that if the company noticed the demand from potential miners, they would consider making more mining-specific graphics cards.
“So, in summary, if the demand for cryptocurrency starts or if we see a meaningful amount, we can also use that opportunity to relaunch the CMP product line to meet the ongoing mining demand,” said Kress.
The chief financial officer believes that most of the demand is still coming from users primarily focused on gaming, adding that only gaming demand exceeded the company’s supply capacity.
Kress said cryptocurrency mining was one of many unique applications that resulted from the programmable nature of Nvidia’s cards, and one that had helped drive market growth in the past:
So, cryptocurrency is interesting. So GPUs, as you know, have been programmable for many, many years, and it allows new applications to constantly discover new applications to use the general purpose GPUs, and that has our overall growth in the market. Cryptocurrency mining is one of those applications. “
According to Kress, Nvidia’s delivery capacity would be limited to at least the beginning of the second quarter, and revenues are expected to remain flat until then.