Graphics cards sales were boosted due to the cryptocurrency mining boom especially on the AMD side of things as AMD cards perform better when mining. We saw record numbers from AMD, Nvidia and different partners for Q1 2018 but with mining become a thing of yesterday things are changing. AIB partners are not noticing a decline in graphics cards sales and this is mainly due to mining dying out.
Nvidia reported revenues of US$3.21 billion for Q1 2018 which is an increase of 66% year on year and 10% on quarter. Nvidia has dominated the GPU market space and that has been pushed to the next level in terms of graphics cards sales due to the mining craze. AMD also was able to get a piece of the pie and took advantage of the mining craze.
TUL the parent company of AMD partner PowerColor has seen an 80% decrease in graphics cards sales and this is affecting revenue for the quarter. This is not only the case for PowerColor but other partners as well that are now facing the effects of the mining craze wear off. AMD and Nvidia have both taken into account the effects of the lack of miners and both companies know that the graphics cards sales are going to go downhill and won’t be the same this quarter.
New graphics cards are expected from both companies. AMD is supposed to move to the 7nm process and it is highly anticipated that Nvidia is going to launch the Volta based gaming graphics cards. It will be interesting to see what kind of boost in performance these upcoming graphics cards will have to offer as compared to what we already have on the market. Having that said decline in demand and the lack of motivation for mining will reflect in revenues and graphics cards sales moving forward.
We will have to wait and see how things turn out, for now all that we can do is wait and see. For more information regarding graphics cards sales, AMD and Nivida stay tuned.
Let us know what you think about the decline in graphics cards sales due to the mining bubble bursting and whether or not you think this is a good thing.