Hello Steamers,
Quite a newbie here. And this is what I have come up with.
The manufacturers of Nvidia and AMD graphic cards gained huge profits from sales in the last year, partly due to the miners who bought GPU to mine cryptocurrency for production. But, these sales are now declining. Demand for graphics processors continued to grow, as the value of crypto currency increased during 2017. But after the market capital reached to a record high of $830 billion, the market collapsed. So the Demand for crypto mining equipment also declined, as it is not as lucrative as it was before several months when the prices for crypto currency going up.
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Although the companies had huge sales because of the crypto-currency industry, they do not want to go in deep marketing into this area. Both companies want their graphics processors to be bought for gaming and research purposes only, not for mining of crypto currencies. Both AMD and Nvidia experienced noticeable growth due to the surge in crypto currencies last year, but everyone predicts this sector will decline soon in terms of sales.
But they are optimistic As crypto currencies will start implementing in retail sector Both companies now expect their earnings associated with crypto mining to fall in future days. Now talking about Ether, it is the second most popular crypto currency, extracted on graphics processors. If the Antminer E3 is turned on for mining this can cause existing graphics processors to become inefficient. But Bitmain the ASIC miner, was gaining momentum even before the Antminer E3 was announced. Last year, Nvidia posted a profit of $3 billion. while Bitmain reported operating profit of almost $4 billion dollars, only from sales of ASIC. Experts says that in near term the demand of graphic cards for mining crypto currencies will decrease up to two-third in second quarter.
Both companies have accepted that their sales will be down soon, but they are ready to take that situation, as they see this situation "healthy" for company.
I hope you liked my article.