Nvidia and AMD are deluged with orders for PC graphics cards
Cryptocurrency ‘miners’ are causing shortages in the companies’ graphics cards and graphics processing units.
Sales of PC graphics add-in cards rose in the second quarter for the first time in nearly a decade. This has benefited Nvidia (NVDA) and Advanced Micro Devices (AMD).
Add-in cards are for personal computers that are typically used by gamers, workstations, rendering farms and enterprise segments that need high-performance graphics. Based on data from Jon Peddie Research (JPR), add-in card sales jumped 30.9% in the second quarter from the first quarter, and 34.9% from a year earlier.
What remains to be seen is if this increase in GPU sales is sustainable for AMD and Nvidia. Furthermore, if it will lead to more market-share shifts in AMD’s favor. We have already seen a leveling of the growth of Ethereum mining. However, price changes and performance shifts in the graphics landscape have the potential to redirect it at any point.
Meanwhile, the Nvidia product line remains better placed for the gaming landscape. AMD has struggled with its release of a new architecture, code-named Vega. AMD benefits more from the continued strength of coin mining.