GPU developer Nvidia has identified Ethereum’s transition to a new consensus mechanism among factors that could negatively affect the demand for its products.
On Wednesday, the company released financial statements for the first quarter of fiscal year 2022, reporting an 84% increase in revenue from the same period last year to $ 5.66 billion. The gaming segment brought in $ 2.76 billion. The company believes that the latter figure reflects video cards sold including cryptocurrency miners. CFO Colette Kress noted that they cannot name the exact extent of this phenomenon.
“We believe that the gaming segment has experienced a positive impact of demand from cryptocurrency miners, although the extent of this is difficult to assess,” she said.
The company emphasizes that in the long term, the demand for its equipment may change along with fluctuations in the cryptocurrency market, as well as due to “changes in the standards and processes of cryptocurrencies, including the upcoming Ethereum 2.0 standard.” Ethereum 2.0 will use the Proof-of-Stake consensus mechanism, which, unlike the current Proof-of-Work, does not require GPUs or other similar devices for mining.
Nvidia has been taking steps this year to shield miners from their gaming hardware and keep it safe for gamers by deliberately cutting the hashrate of graphics cards when used in Ethereum mining. At the same time, the company released specialized processors for miners (CMPs), the sales of which, according to Kress, brought the company $ 155 million.
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