Bitmain’s upcoming chip threatens the performance board business of Nvidia and AMD, as the battle to woo cryptominers hots up…
One of the main beneficiaries from the boom in cryptocurrencies has been the companies who sell PC components that specifically offer notable boosts for cryptocurrency miners. Both AMD and Nvidia have seen sales of their high-end GPU boards soar in recent times, whilst the more traditional customers for said boards – high end PC gamers – have been left to pay a higher retail price, as this wave of increased demand in turn increases the cost to consumers.
But there’s a threat on the horizon to both Nvidia and AMD, with the upcoming availability of Bitmain’s new product. This is set to be a chip specifically optimised for the mining of Ethereum, with the aim of starting shipments in the second quarter of this year (although on the Bitmain website, pre-orders are already selling out). Furthermore, other hardware companies are believed to be working on rival products too, and this wave of fresh competition is set to damage AMD and Nvidia’s hold on the market.
As such, CNBC reports the news that Wall Street firm Susquehanna has now reduced its price target for AMD shares, changing their grading from neutral to negative. Nvidia’s share rating is unaffected, but they too are expected to be less lucrative.
Already, Bitmain’s specialist chips have earned it a growing place in the market, with revenues rumoured to be rivalling Nvidia’s in the sector. Its new specialist Ethereum mining chip is set to have a knock-on hit for the broader PC graphics card market too, with many miners now looking to specialised products that don’t even need a screen output. You can find more on Bitmain, here.