NVIDIA: Demand for GPUs Will Decline as ETH Moves to Proof-of-stake

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Graphics card manufacturer NVIDIA believes the change of Ethereum’s consensus algorithm from the current proof-of-work to proof-of-stake is a threat to the company.

In particular, the company believes the demand for GPUs could drop significantly once Ethereum 2.0 goes live.

In the company’s quarterly earnings call yesterday, NVIDIA reported an 84% year-over-year increase in revenue – reaching $5.66 billion – as well as $2.76 billion for its gaming unit, representing a 106% year-over-year increase.

According to the company, much of that $2.76 billion came from selling graphics cards to crypto miners.

Now the company is concerned the change in the consensus algorithm of the second-largest cryptocurrency on the market could affect graphics card sales:

“Demand and use of GPUs for cryptocurrency has fluctuated in the past and is likely to continue to change quickly. Volatility in the cryptocurrency market, including changes in the prices of cryptocurrencies, can impact demand for our products and our ability to estimate demand for our products. Changes to cryptocurrency standards and processes including, but not limited to, the pending Ethereum 2.0 standard may also create increased aftermarket resales of our GPUs and may reduce demand for our new GPUs.”