Nvidia, one of the world’s biggest Graphics Processing Units (GPUs) manufacturer, announced record revenue of $2.23 billion for the second quarter ended on July 30, 2017, up 56% from the previous quarter.
“The recent rise in cryptocoin prices resulted in increased demand in OEM GPU sales,” Nvidia said in their quarterly report to shareholders.
Most of them were sent out of stock during much of spring and early summer. Then, a cooling down during the red July bear-market returned GPUs availability, but prices remain inflated.
Annoying gamers, which has led Nvidia to increase production of crypto-specific GPUs, so serving both markets, with their CEO suggesting the GPU mining demand isn’t going anywhere soon:
“It’s very clear new currencies will come to market. And it’s very clear the GPU is ideal for cryptography. This is a market that’s not likely to go away anytime soon,” Jensen Huang, Nvidia’s CEO, said.
It’s unclear, however, whether they’ll be able to sufficiently increase production so as to meet demand from both miners and gamers, but Huang acknowledged they may have not fully served the gaming market.
“There were gamers whose needs and demands weren’t filled last quarter, and the second quarter is an important part of the year for us,” he said.
With traditional stocks becoming somewhat dependent on digital currencies like ethereum and others, their price is also starting to reflect more familiar movements in this space rather than usual stock price trading.
Nvidia’s stock price has been on a bull run for much of summer, up from 125 to 175. But moody traders, the kind familiar to this space, have sent its price down crashing today.
An increase in profits by 56% apparently isn’t enough, so they have gone on a selling spree of sorts, although most stocks have been down today following new recent highs.
Nvidia’s and AMD’s stocks, however, are becoming particularly volatile as demand for digital currencies suddenly rose this year, creating a new market for both.
That means this space is now affecting wider and more established traditional investors, some of whom have been burned by betting wrong on Nvidia or AMD prior to the GPU craze.
Leading Goldman Sachs to say they can no longer ignore the cryptomarket. So it looks like institutional investors are moving in as digital currencies level up from their fringe hobby thing to a near $130 billion market cap.