Nvidia announced its first-quarter earnings report, reporting revenue of $3.21 billion, exceeding expectations of $2.89 billion. According to the report, the company's total revenue was $289 million from sales of cryptocurrency miners, accounting for 9% of total revenue.
The second thing is that the bitcoin mining machine manufacturer Jia Nanzhi submitted a prospectus to the Hong Kong Stock Exchange. Investment bankers said that Jianan’s valuation is expected to hit 100 billion yuan and raise $2 billion.
Will the mining chip turn sharply?In March of this year, the mining tide, which was expected to cool down in half a year, did not come. Instead, it reached its peak in March, driving NVIDIA, AMD and related partners to achieve new highs in the first quarter.
Among them, Nvidia's latest quarter revenue as of April 29 reached 3.21 billion US dollars, an increase of 66% over the same period of 2017, net profit reached 1.24 billion US dollars, an annual increase of 244%, gross profit margin as high as 64.7%, the overall performance hit a record high.
In the first quarter of 2018, AMD's revenue reached US$1.65 billion, a 40% increase over the same period in 2017. Net profit reached US$81 million, and gross profit margin also rose to 36%, an increase of 4% over the same period in 2017.
However, it is worth noting that both NVIDIA and AMD believe that the demand for mining chips will slow down. NVIDIA even said in the earnings conference call that it expects the company's second-quarter cryptocurrency mining chip sales to drop by a third. two.
In April, AMD expects its second-quarter GPU sales to decline moderately due to blockchain factors. TSMC also blamed the downward revision of its full-year revenue forecast on "the uncertainty of cryptocurrency mining demand."
On the whole, once the mine disaster comes, NVIDIA, AMD and other manufacturers will bid farewell to the high performance of the past year.
However, NVIDIA has already prepared for this market. In addition to the expectations of the market, NVIDIA has paid more attention to the field of artificial intelligence.
NVIDIA's first quarter earnings report for 2018 showed that its data center business revenue was $701 million, a year-on-year increase of 71%, which is the largest growth of all NVIDIA business segments. This is mainly due to the rapid development of AI. In the case that the development of AI chips is not mature enough, NVIDIA has provided AI with a "CPU + GPU" versatile chip solution, which makes NVIDIA take a big step in the field of AI chips. Piece of cake.
At the same time, in early May, market research consultancy Compass Intelligence ranked more than 100 AI chip manufacturers worldwide, and Nvidia topped the list.
However, for Jia Nan Zhi Zhi, the mining chip is the main weapon to help it get on the IPO.
According to Jianan Zhizhi's prospectus, Jianan Zhizhi claims that the company is a leading IC design company in high-performance and re-calculated ASIC chips. Since its inception, it has been providing a single system product line under the AvalonMiner brand.
According to the prospectus, Jia Nan Zhizhi sold 9,727 A6 mining machines in 2015; in 2016, the company upgraded its products from 28nm A6 to 16nm A7. In the whole year, the total sales of the two mining machines totaled 93,800 units. In 2017, the company sold 294,500 sets of mining machines; even more "terror" is that in the first quarter of 2018, the company sold 101,000 units at a time, more than one-third of last year's sales, more than The total amount of the previous year.
In just three years, Jianan Zhizhi's revenue soared from RMB476.99 million in 2015 to 1.308 billion in 2017, with a compound annual growth rate of 423.7%; gross profit margin also increased from 29.1% to 46.2%. In 2017, Jianan Zhizhi delivered 294,500 mining machines, with a market share (bitcoin mining machine) of 20.9%, ranking second in the world.
In addition, the prospectus also shows that the ex-factory price of the Avalon mining machine is between 3,122 yuan and 4,402 yuan, but its unit cost is only between 2,354 yuan and 2,600 yuan, and the gross profit margin is as high as 46.2%.
As a fabless IC design company, Jia Nan Zhizhi focuses on design and sales, and is responsible for the main parts of manufacturing and manufacturing, and is responsible for the foundry and professional packaging and testing companies.
The core manufacturing process was handed over to TSMC, the world's leading chip foundry. In 2015, 2016, and 2017, the value of integrated circuits purchased from TSMC accounted for 75.7%, 66.2%, and 63.5% of the total purchases during the relevant period.
In other words, after the design of the integrated circuit, Jia Nan Zhi Zhi was handed over to the partner TSMC for manufacturing, and then assembled and tested by OSTA, and finally sold the product to the customer.
In the field of IC manufacturing, TSMC is its only third-party foundry partner since 2015. In the field of packaging and testing, it started cooperation with ASE, STATS ChipPAC and SPIL in 2015, 2016 and 2017 respectively.
Mining chip companies collective turnHowever, whether it is Jianan Zhizhi or the first bite continent, in recent years, there has been a trend to expand the use of products and turn to the field of artificial intelligence.
Taking Jia Nan Zhi Zhi as an example, in addition to the mining machine chip, Jia Nan Zhi Zhi began to develop ASIC chips for artificial intelligence applications in 2016, and plans to mass production in the fourth quarter of 2018.
At the same time, Jia Nan Zhizhi also stated in the prospectus that its future growth will largely depend on whether it can penetrate new markets beyond bitcoin mining applications, especially other types of encryption that require high performance and high computing power. The market for the application of ASIC chips for currency, or artificial intelligence products.
At the same time, Bit China, which ranks first in the mining machine chip market, is also following a similar path.
According to Cointelegraph, Bitcoin is turning to artificial intelligence to find alternative sources of income. Wu Jihan, CEO of Bitcoin, said that the field of artificial intelligence requires a lot of calculations, which is a natural choice for Bitumn. Wu Jihan predicted that AI chips can account for 40% of Bitland's revenue in five years.
In November 2017, Bitcoin “entered†artificial intelligence and released its AI brand “Calculationâ€, as well as the scalar acceleration computing chip BM1680, the SC1 SC1+ and the intelligent video analysis server SS1.
Bitcoin not only goes upstream to the industry chain, but also acquires downstream-application service providers (such as early education robot service provider Radish Technology).
The technical barriers of the mining machine itself are not high. The current major mining machine manufacturers can monopolize a large market share, on the one hand because they entered the field earlier and can get the chips and integration. The resources of circuit manufacturers; on the other hand, because of its "drilling policy gap", the mining machine as a hardware product, so far no relevant production standards, in other words, whether it will explode at work can not be judged. Traditional large companies will face greater policy risks, and small companies will no longer have the strength to enter.
Officially because of this, companies like Bitcoin and Jianan Zhizhi are also transforming their roles, trying to get rid of a single line of business and enter the chip research and development industry.
However, chip development is a technology-intensive enterprise that requires significant capital investment. Compared with traditional chip design companies, how to extend ASIC chips to other areas and how to challenge other traditional chip design companies is the biggest problem in the future.
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