Nvidia hopes for jackpot owing to Ethereum mining

By: Bharggavi Ssayee

April 14, 2021 11:16 AM

The new processor designed specifically for Ethereum crypto-mining is a source of growth for Nvidia. The manufacturer of the CMP hopes to generate 150 million dollars in sales in the first quarter.

Nvidia could have upset the Ethereum mining industry with its strategy. The manufacturer decided to put a strain on them. There is no longer any question of seeing these miners exploiting their GPUs.

Nvidia intends to reserve them for video game players. To meet the needs of ETH mining, the manufacturer therefore drew a new CMP processor, or Cryptocurrency Mining Processor.

Nvidia triples its crypto processor sales forecast

And obviously, the request is there. Nvidia has just raised its sales forecasts for the first quarter of its fiscal year 2022. It initially expected a turnover of 50 million dollars.

Ultimately, he hopes to generate $ 150 million in revenue over the period, three times more than initially expected. However, the announcement of the new line of CMP processors did not go back until February.

The forecast increases are however general for Nvidia. The pandemic is more widely driving its sales of graphics processors. And the manufacturer expects quarterly sales of more than $ 5.3 billion.

Nvidia therefore appears to be a winner on both counts, players and minors. And they do indeed have every interest in getting equipped now. The price of Ether has risen sharply since the start of the year.

Switching to Proof-of-Stake does not discourage minors

Year over year, the price of ETH has increased by more than 1300%. In a few days, the price of the 2nd capitalization cryptocurrency established two new ATHs, the last of which dated April 13 at more than $ 2,200.

However, is investing in computing power still of interest to minors? The Ethereum blockchain must indeed migrate over time from Proof-of-Work to a consensus of the Proof-of-Stake type.

The complete switch to ETH 2.0 will take some time, however. Ethereum miners may therefore still find it beneficial to increase their computing capacity to take advantage of current Ether prices and high trading fees.

This is the trend at the moment. The Ethereum hash rate, or hash rate, which measures the total computing power used to mine and process transactions.