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NVIDIA is Banking on Gaming & Data Center Growth to Cover Dip in Crypto

For several years now, cryptocurrency mining has driven incredible growth in the chip market, especially with GPUs and custom chips. With the dramatic drop in crypto prices thus far in 2018, far fewer people are looking to make the expensive investment to start mining Bitcoin or any of the many other options out there. Despite that, however, NVIDIA (a leading chip maker) is still confident about their future.

The company said that they will continue to play on their core strengths to help grow their business. They have strong data center and gaming options, which are expected to be able to keep them in a very strong position. In fact, many people who aren’t so interested in cryptocurrencies are happy to see this shift of focus as it will allow them to more easily get the cards that they need.

Cryptocurrency miners have been buying up as many of the high-end graphics cards and putting them to use as mining rigs for years. This left many gamers, and even certain data centers, unable to get what they need, or having to pay highly-inflated prices.

Benefiting from a Diverse Customer Base

NVIDIA is really benefiting from the fact that they have a very diverse customer base. While a dip in the crypto market is certainly going to be felt, it can (and almost certainly will) be made up in other areas. Their main markets include:

  • Gaming – Gaming has long been what NVIDIA is best known for. They make some of the best quality graphics cards in the industry. The gaming industry is growing very quickly, which is helping to drive demand for their chips.
  • Data Centers – Data centers often have to use chips from NIVIDIA for a wide range of different things. Even their graphics cards can be used to do complex number crunching, which is a staple for many large facilities. Like the gaming industry, the data center industry is quickly growing and expanding.
  • Cryptocurrency Mining – Mining with graphics cards is still quite popular, but the demand is undoubtedly dropping off thanks to the drop in price. The fact is, however, that many experts believe that crypto will recover in the coming year.
  • Automobiles – This is an area most people aren’t aware of, but the autonomous vehicle industry uses advanced chips to power many of the necessary technologies. NVIDIA actually just lost a contract with Tesla, but they are still working with many other automobile makers and this industry will be growing dramatically in the coming years.

Overall, NVIDIA is still a very strong company that will be there to serve all their customers, including new and existing data centers, long into the future. In fact, for those who are running data centers and will require their chips in the coming years, now may be an excellent time to make purchases due to the current drop in demand that may make it easier to get them.