While NVIDIA’s stocks have fallen under pressure due to its ties with cryptocurrency mining, NVIDIA founder, President and CEO Jensen Huang said the crypto craze is not expected to die down anytime soon.
“Cryptocurrency will be here,” he said during an interview with CNBC’s Mad Money on Thursday. “The ability for the world to have a very low-friction, low-cost way of exchanging value is going to be here for a long time,” he added.
NVIDIA is not just a chip-making company but also one that specializes in producing high-powered graphics processing units (GPUs). For months now, NVIDIA joined in on the cryptocurrency bandwagon before Wall Street analysts turned sour on the unstable trend.
“Blockchain is going to be here for a long time and it’s going to be a fundamental new form of computing,” Huang told CNBC. He expects blockchain and cryptocurrency to be an important driver for GPUs.
Huang, however, admitted that NVIDIA’s predecessors were the best, if not “perfect” vessels for employing the capabilities necessary to mine cryptocurrencies.
Huang explains that the reason why cryptocurrency became a popular thing on top of their GPUs is that NVIDA’s GPUs is “the world’s largest installed based of distributed supercomputing.”
Blockchain requires cryptography and ability to create a public ledger that is completely safe, immutable and can be distributed worldwide. According to Huang, “our processor serves as the perfect processor to enable this supercomputing capability to be distributed. And that’s the reason why it is used.”
But even with the cryptocurrency craze fueling the demand for bigger and better GPUs, Huang emphasized that it’s not likely going to be a growth driver for NVIDIA.
Video games and graphics visualization make up the majority of NVIDIA’s growth.
According to Huang, “Gaming is a much bigger business, data center is a much bigger business, our professional graphics is a much bigger business and, of course, in the future, everything that moves will be autonomous and we’ll have autonomous capabilities and that’s going to be a much bigger market”.
For Huang, cryptocurrency just gave them a bit of “juice” which made all their GPUs do be in high-demand. However, he said that in the long term, the fourth growth driver is going to make NVIDIA ten times bigger than it is today.