NVIDIA and AMD's Revenues Increased Six Times Amid the Cryptocurrency Boom

A new report from the German resource 3DCenter suggests that NVIDIA and AMD's revenues significantly increased amid the last cryptocurrency boom. The analysis of sales volume and sales of graphics cards over the last 14 quarters, excluding the current quarter, has shown that hype around cryptocurrency allowed the companies to generate income equivalent to six years of normal operations.

According to the study, manufacturers' performance increased dramatically between the fourth quarter of 2020 and the first quarter of 2022, when the cost of cryptocurrencies rose and miners massively bought video cards. The companies saw not only a noticeable increase in the number of graphics cards sold but also in their average price and the resulting revenue. 

As a basis for comparison, the authors of the study took the year 2019 – the time period that was not yet affected by a pandemic or a cryptocurrency boom. According to the study, the average sales volume of video cards in this period was 9.63 million units per quarter, while from Q4 2020 to Q1 2022, it reached 12.26 million units per quarter.

Revenue from the quarterly sales of video cards in 2019 didn't exceed $2.88 billion, while during the cryptocurrency boom, this figure increased by 302% reaching $11.58 billion. The average price of a video card also increased significantly – from $299 in 2019 to $945 in the period between Q4 2020 and Q1 2022.

The report also states that for six consecutive quarters, NVIDIA and AMD's revenue was three times higher than during the years of normal operations, and the maximum difference for the study period was almost five times.

The study found that the average cost of GPUs reached $1,077 in the third quarter of 2021, compared to a low of $270 in the second quarter of 2019. In 2022, this figure began to decrease and amounted to $529 in the second quarter. However, the authors emphasized that prices are declining more slowly compared to how they increased before.

You can learn more by reading the full report here. Please note the article is in German. Also, don't forget to join our Reddit page and our Telegram channel, follow us on Instagram and Twitter, where we share breakdowns, the latest news, awesome artworks, and more.