Nvidia GPUs for mining will bring three times more profit than expected

Nvidia expects the stock market troubles to continue in 2021.

Nvidia’s new mining graphics cards appear to have delivered three times the revenue in fiscal first quarter 2021 than the company expected, indicating extremely strong demand for GPUs as graphics card inventories struggle to keep up with skyrocketing demand.

In a statement to investors this week, Nvidia announced that the company’s first-quarter fiscal 2021 revenue beat all expectations, pushing the company’s expected revenue from new crypto-mining graphics chips (CMPs) to $150 million from estimates of $50 million. dollars.

“Overall demand remains very strong and continues to exceed supply, while inventory through our channels remains fairly thin,” said Colette Kress, Nvidia’s executive vice president and chief financial officer. “We expect demand to continue to outstrip supply for most of this year. We believe it will be able to offer enough graphics cards to support consistent growth beyond the first quarter.”

The inflated sales of new Nvidia CMP graphics cards may come as a surprise to many, especially since they don’t seem to be available for purchase online and seem to be limited to specialized orders from mining enterprises.

Does this mean you can buy an RTX 3080?

Despite good sales of new CMP graphics cards, which is good news for Nvidia, they do not mean that gamers will be able to get their graphics cards anytime soon.

The hashrates of the new CMP graphics cards are low and it looks like they are based on leftover GPUs from the Pascal era, as was the case with the GTX 1660 Super, which continues to be used for cryptocurrency mining.

However, the prices we’ve seen on the internet for some Gigabyte and Palit CMP video cards are still too high to turn into a quick profit for miners, Nvidia does not list the MSRP for its CMP products announced so far.

This means that the high sales of CMP can only emphasize the lack of more powerful graphics cards, such as the RTX 3080 and RTX 3090, rather than the genuine interest of crypto miners in new CMP products.

Unfortunately, this means that demand for new miner GPUs will quickly shift to consumer GPUs as inventory becomes more available. And since Nvidia expects graphics card demand to outstrip supply for much of 2021, CMPs won’t affect gamers reaching their RTX cards at all.