Samsung and NVidia Makes Profits Despite Low Demand for GPUs

Although the market is flooded with memory components used for crypto mining, the Samsung Corporation is confident that profits from this business will continue until the end of 2018. Overall, the demand for crypto mining hardware has declined throughout the year, mainly because of the plummeting of most digital assets.

According to a source quoted by the Financial Times, the prices for Dynamic Random Access Memory (DRAM) are unlikely to increase beyond their current range. DRAM is an essential component for the development of graphics processing units. From Q1through Q3 2018, the prices for DRAM have soared by 48%. However, these prices are expected to reduce in the last quarter of the year.

When the price falls, Samsung will reduce its production to avoid losses. The stock price of Micron, an American manufacturer of DRAM chips, plummeted significantly in Q3 because of the inability to sell out its DRAM stock.

On the other hand, NVidia has attained record profits from the sale of GPUs despite the reduced demand for crypto mining hardware. Apparently, the graphics cards manufacturer generates 20% of its total revenue from making modified graphics chips for data centers. These data centers use the chips to run an AI system that processes voice and facial recognition data.

For now, there is no clear link between the decline in DRAM prices and the low demand for mining hardware. Recently, a Chinese official hinted that the DRAM market could be a victim of price fixing. The market is dominated the US-based Micron and tow Korean firms, SK Hynix and Samsung.

China is presently the world’s leading importer of DRAM chips. This is due to the immense demand for these devices by local electronics companies. Although the country produces a substantial amount of the chips, the production rate is incapable of satisfying the demand. Moreover, the local Drams are re not as efficient as the imports.

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