Nvidia Increases GPU Production Due to Increased Demand from Cryptocurrency Miners

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Cryptocurrency related activities are expanding in many different fields. One of the industries that has an interesting future potential is cryptocurrency mining activities. Nvidia is now boosting its GPU production in order to fulfil the increased demand from cryptocurrency miners.

Nvidia Produces More GPU Units

During the last months, the market experienced a shortage of graphic processing units. And cryptocurrency miners are trying to buy any GPU they are able. Because of this situation, Nvidia will be increasing its production of GPU for the rest of the year so as to meet the current market demand.

Jen-Hsun Huang nvidia

The company based in California has seen its revenue increased due to the fact that cryptocurrency mining activities surged during the past year. As Nvidia’s CEO commented, cryptocurrencies are here to stay, meaning that there will always be a demand for GPU units.

Nvidia’s co-founder Jen-Hsun Huang commented:

“We’re sold out of many of our high-end SKUs, and so it’s a real challenge keeping graphic cards in the marketplace for gamers…. We have to build a whole lot more… We’ve got to come closer to the demand of the market. And right now we’re not anywhere near close to that and so we’re just going to have to keep running.”

Prices for these pieces of hardware have skyrocketed in the last months as cryptocurrency price increased. Nvidia is the most important GPUs producer in the United States and has presence in several other countries. The company’s price has also increased over tend fold due to an increased interest for mining activities.

“At the highest level the way to think about that is because of the philosophy of cryptocurrency – which is really about taking advantage of distributed high-performance computing – there are supercomputers in the hands of almost everybody in the world so that no singular force or entity can control the currency,” said Huang about the decentralized nature of cryptocurrencies.

Nvidia Market Strategy

Nvidia is planning to increase its supply due to the increased demand. But the cryptocurrency market is very volatile, meaning that during some periods of time, the interest for mining activities could be reduced, negatively impacting on the company.

But Nvidia’s CEO is sure that cryptocurrencies will last, at least, an important amount of time in the future. And that’s a key part of the company’s strategy.

During an interview, Huang explained:

“This year, the world is starting to come to terms with the existence of crypto. It’s based on blockchain, and it’s very secure and very low overhead. I think there’s clearly real utility. It’s a real phenomenon, and so everyone is coming to terms with it. I’m not against the concept of virtual currency – it’s a real as virtual goods, and video games.”

For Huang, cryptocurrencies will not disappear and will stay among us for a longer period of time. In this way, Nvidia is planning is market strategy taking for granted that cryptocurrencies will not go anywhere.

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