We talked about cryptocurrency mining and how the trend is at an all-time high. Gaming GPUs are out of stock due to this craze, especially AMD GPUs. We have reports that Nvidia will be re-purposing GPUs in order to cater to the mining market and the upcoming Nvidia GTX 1080 and 1060 GPUs that will cater to this segment will not have display ports.
Seeing the potential in this segment of the market, Nvidia can use GPUs that have poor dies dedicated to video. Mining GPUs do not need display ports and hence Nvidia can get 100% margins using this method. Nvidia could also remove the video portion of the die and make smaller GPUs. This would also help with the flow of revenue.
These GPUs will be cheaper than their gaming variants and will come without display ports. One thing to note here is that these GPUs will be worth nothing is the mining market goes south because of the lack of display ports.
According to Susquehanna Financial group’s Christopher Rolland:
The first is a new GPU design that eliminates the portion of the die dedicated to display/video. The second, more likely possibility is “binning” mainstream 1060 and 1080 gaming GPUs, using only those die in which the display/video functions test poorly.
This does make sense as Nvidia would be able to make the most out of the yield and even manage to sell defective dies with poor video portions. This would add a great deal to the total revenue of the company. He further went on to say that:
Additionally, as the display/video functions are eliminated, NVIDIA will not risk cannibalizing their core gaming markets with a price-reduced product.
The Nvidia GTX 1080 is a very powerful GPU and with the lower price, this could be great value for money. You can learn more here.
Let us know what you think about all this and whether or not you would use the Nvidia GTX 1080 for mining.