In a year and a half of the cryptocurrency boom
Hardware

In a year and a half of the cryptocurrency boom, AMD and NVIDIA made money from graphics cards, like they did in six years

Edition of the German language resource 3DCenter did a great job over the past weekend analyzing sales volume and sales of graphics cards using statistics Jon Peddie Research for the last 14 quarters, excluding the current quarter. The authors of the study came to the conclusion that the period of the last cryptocurrency boom allowed market participants to generate income equivalent to six years of normal operations.

    Image source: NVIDIA

Image source: NVIDIA

This period is to be understood as six quarters, beginning with the fourth quarter of 2020 and ending with the first quarter of 2022. Quarterly averages over this period show not only a noticeable increase in graphics cards sold, but also in their average price and the resulting revenue. As expected, value indicators grew faster than natural ones. As a basis for comparison, the authors took the year 2019, which was not yet affected by a pandemic or a cryptocurrency boom. Average sales volume of video cards this year was 9.63 million units per quarter, revenue from their sale did not exceed $2.88 billion, and the average price of a video card was capped at $299.


Image source: 3DCenter

Amid the cryptocurrency boom of 2021, averages soared: graphics cards sold 27% more in the quarter, revenue rose 302% to $11.58 billion, and the median price more than tripled to $945. Looking at all six quarters combined, graphics card sales increased 41% year over year and revenue increased fivefold. In fact, as the authors of the study explain, in a year and a half of the boom, market participants managed to salvage the same amount that would have taken them six years under normal conditions.

Unfortunately, graphics card prices are already a far cry from 2019 levels, averaging 76% higher, reaching $529 per graphics card. According to the authors of the original publication, at least 15.8 million video cards were produced for the needs of miners during the year and a half of the boom. If a significant part of it flows into the secondary market, it becomes difficult for participants in the primary market to sell new products.


Image source: 3DCenter

It is noteworthy that during the peak of the cryptocurrency boom, AMD saw a stronger increase in graphics card sales volume as it started from lower levels and captured about 20% of the discrete market. For example, in the fourth quarter of 2021, AMD increased graphics card sales volume by a factor of one and a half to 3 million units year-over-year, while NVIDIA capped growth from 9.1 to 10.2 million units. Apparently, supplier manufacturing capabilities were the limiting factor, and AMD increased its market share from 17% to 23%. In the first quarter of this year, AMD’s share increased to 24% overall, but by the second quarter it had fallen to 20%.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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