Gaming hardware giant Nvidia has addressed the persistent shortage of its new RTX 3000 line of products following high demand from gamers and, to a lesser extent, cryptocurrency miners, increasing prices and decreasing availability.
Colette Kress, Nvidia’s chief financial officer, said the company doesn’t have a good view of how much demand has come solely from cryptocurrency miners, but she doesn’t think that’s a big part of the business right now.
This is despite reports from some Ether (ETH) miners building oil rigs consisting of 78 Geforce RTX 3080 graphics cards from Nvidia, and whose owner income is estimated at $ 122,000 per year.
Kress suggested that future spikes in demand from miners could provide a good opportunity to restart the company’s CMP product line. CMP refers to a range of Nvidia graphics cards specifically designed for cryptocurrency mining that come without the display output that is not required for the task at hand.
At the 19th annual conference of the J.P. Morgan Tech / Auto Forum on Jan. 12 on Seeking Alpha, Kress told an audience of investors that should the company monitor demand from potential miners, it would consider making more mining-specific graphics cards.
“In summary, we can take this opportunity to restart the CMP product line when the demand for crypto starts or when we see a significant amount,” said Kress.
Believing that most of the demand is still coming from a primarily game-focused user base, the CFO adds that demand for games alone has exceeded the company’s supply capacity.
According to Kress, cryptocurrency mining was one of the many unique uses that result from the programmability of Nvidia cards and that have fueled market growth in the past:
“Yes. So cryptocurrency is interesting. As you know, GPUs have been programmable for many, many years, allowing new applications to use all of the GPUs, and this has fueled our overall market growth. Cryptocurrency mining is one of those applications.”
According to Kress, Nvidia’s delivery capacity would remain diminished until at least the beginning of the second quarter, and revenues are expected to remain unchanged until then.