Bitcoin, Cryptocurrency And Blockchain News

Sold-Out! But NVIDIA isn’t Happy as Gamers Suffer at the Hands of Crypto Miners

"Gamers come first" for the GPU inventor


The surge of cryptocurrency mining through 2017 and beyond hasn’t brought any good news for gamers who rely on NVIDIA’s GeForce graphics cards. American technology company, NVIDIA Corporation (NVDA) is the inventor of the GPU (graphics processing unit) which has been widely used across the gaming, cryptocurrency, and professional markets, as well as the system on chip units (SoCs) for the mobile computing and automotive market.

For the past year, the company has been struggling to meet GPU demand from gamers, as cryptocurrency miners have been increasingly buying graphics cards with the rise in popularity of mined crypto assets. Although mining Bitcoin (BTC) is now dominated by dedicated ASIC devices, other virtual currencies have shot up in its wake, and the likes of Ethereum (ETH) can still be effectively mined using PCs sporting multiple graphics cards. The spike in demand from these users recently led the company to face a sell out situation for its GPU cards, with gamers struggling to find a card, prompting the company to issue a statement reinforcing that “gamers come first.”

For NVIDIA: “Gamers come first”

In a comment to the German tech website, said: “For NVIDIA, gamers come first. All activities related to our GeForce product line are targeted at our main audience. To ensure that GeForce gamers continue to have good GeForce graphics card availability in the current situation, we recommend that our trading partners make the appropriate arrangements to meet gamers’ needs as usual”.

The “arrangements” mentioned here refer to NVIDIA’s latest move to ask retailers to sell a maximum of two graphics cards (of the same model) per person, in an effort to cut back on bulk orders from virtual currency miners. The request is a merely suggested limitation, the enforcement of which is up to the retailers.

GPU Card Price & Stock up!

NVDA stock is up by over 720% over the past 2 years, by 125% over the past year alone, and by 40% over the last 6 months alone. The company’s GeForce GTX 1070 is selling at about double the recommended price on account of the supply glut.

So, the high demand for its graphics cards, accompanied by a subsequent surge in the company’s stock price, has painted an overall bright picture for the company’s prospects. The stock finds its place in the top holdings of every new technology focused fund/portfolio these days, including some well known names such as, ARK Web x.0 ETF (ARKW) – 4.14%; Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ) – 7.96%; AdvisorShares New Tech and Media ETF (FNG) – 6.85%; PowerShares DWA Technology Momentum Portfolio (PTF) – 6.39%; and the new blockchain-focused funds, the Reality Shares Nasdaq NexGen Economy ETF (BLCN) –  2.08%, and the Amplify Transformational Data Sharing ETF (BLOK) – 4.44%.