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Nvidia Sailing Two Boats at a Time; Time Will Tell How Safe It Is

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Nvidia Sailing Two Boats at a Time; Time Will Tell How Safe It Is
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Graphics Processing Unit (GPU) maker Nvidia is playing well in the artificial intelligence (AI) boom. The company performed well in terms of revenue, gaining over 200 percent in the last year. Data centers generated more than $14 Billion out of $18 Billion as reported by the news website Ars Technica.

A Great Conundrum

Nvidia’s GeForce division also performed well according to their latest earnings in contrast to fiscal year 2022. The company has released GeForce RTX series GPUs like RTX 4060 this year. Despite them not carrying any major upgrade from their predecessors, data shows RTX 4060 and RTX 4060 Ti garnered significant attention quickly.

The article notes Nvidia had suffered during the crypto winter last year. Oversupply of their crypto mining GPUs during the time eventually affected overall sales. The year 2022 will likely go down as the worst period for the crypto market in history. Two of the biggest ecosystems failed during that time.

Stablecoins are cryptocurrencies that are supposed to stay, as the name suggests, stable. Ironically, TerraUST, an algorithmic stablecoin, became the very reason to cause instability in the cryptosphere. The sector lost over $450 Billion from its market capitalization as TerraUST got depegged from the United States dollar in May 2022.

As the market managed to regain stability somehow, it again ran into the crippled, then Sam Bankman-Fried backed crypto exchange, FTX. A spike in user withdrawals which revealed the $8 Billion hole in their account sheets, compelled the company to file for bankruptcy in November 2022, adding weakness to the already erratic cryptocurrency market.

For crypto miners, Nvidia holds power they can harness to mine digital assets like Bitcoin (BTC), the biggest cryptocurrency by market cap. However, not during the crypto winter. Now that the market has regained momentum, and BTC halving almost on the shore, crypto mining could be a boon to Nvidia revenues again.

Halving is a recurring event that cuts mining rewards for adding a block to half. Currently, a miner receives 6.25 BTC for one block added. Analysts believe the flagship crypto asset may gain tremendously in its value. Some even speculate it could reach a Million dollars. However, historical data doesn’t support the fact that halving affects crypto prices. Still, the belief could coerce crypto miners into adding muscles to their current mining fleet.

Nonetheless, artificial intelligence (AI) is something Nvidia is rooting for currently. Jensen Huang, the company’s CEO, said during the GTC 2023 conference earlier this year that they will bring AI to every industry. More developments in technology have caused the company to beef up its production to meet the increasing demand for chips used for AI.

British news media The Guardian reported in May that Nvidia has become the first chipmaker to touch a trillion dollars in valuation. With miners preparing themselves for upcoming halving and AI spreading its roots to a wide-ranging sector, time will tell who becomes a better sidekick for the company.

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