Nvidia made a earnings call that covered the second quarter of 2021, where it managed its record revenue, especially in terms of gaming (through Looking for Alpha). Demand for GPUs from Nvidia gaming continues to outstrip supply, making the green team manage a record gaming revenue of $ 3.06 million, 85% more than the same period last year.
Nvidia launched the RTX 3080 Ti and the RTX 3070 Ti in this time period, which explains why it has done so well. We preferred the non-Ti versions of the two cards, but there’s no getting away from the fact that the market is absolutely desperate for graphics cards right now, no matter how good quality they are.
Given how good the 30 Series is, I can’t help but wonder how much more Nvidia could have gotten if the supply wasn’t a problem. And you know, if the cards were sold at a price close to their PDSM. Even if it were, maybe AMD would have had a few more cards to make this a fair battle. I guess we'll never know!
When asked about when supply problems would end, Jensen echoed what other silicon manufacturers have been saying lately: "I hope we see a restricted supply environment for the vast majority of the year. what comes next is what I guess right now. "
A disturbing answer for sure, though probably realistic.
Intel's entry into the graphics card market early next year will ease demand for Nvidia's GPUs a bit, but there are many unknowns about the first Alchemical GPUs, so it shouldn't be assumed that the market will move instantly towards it. We'll have to wait and see how the new candidate's hardware measures.
Back at Nvidia, you might be wondering what percentage of that gaming revenue is made up of people buying graphics cards for cryptocurrency mining? It’s hard to completely disconnect why these cards are being bought, even though Nvidia has tried to deter miners with their low-speed GPUs.
Nvidia also introduced its CMP cards specifically for miners when it introduced these LHR offerings, so you can at least keep track of those numbers. Nvidia says it "only" sold its $ 266 million CMP cards, but it's less than the $ 400 million it expected to earn during the period.
Since the crypto market hasn’t dried up exactly, this could indicate that buyers aren’t too interested in cards that have limited resale value. No player will want a CMP card, as it doesn’t even have video output. That is, Nvidia's attempt to dissuade miners from buying GPUs for gaming may not have worked. It will be interesting to see if Nvidia continues down this CMP and LHR path: LHR GPUs were also hacked recently, though that wouldn’t have affected second-quarter sales.
Regardless, it still seems like a lucrative time to pursue the business of graphics cards. Something that will probably continue until the values return to normal levels.