Sure this is linked to the algo but also on how nvidia cards are working.
I don't see this behavior on my 780ti for which tdp% core clock are set differently and both power and core clock are very stable.
Here at some point in the processing of the algo, the card requires higher tdp to sustain a given clock frequency, when it tries to increase the power (voltage or current), it goes beyond its 100%. The card mechanism changes voltage/intensity to put back the power below its limit (if you watch core clock frequency this one also change). Once it is well below the limit, it adjust the core clock back to the value which was set initially and the whole process repeats indefinitely.

So yes, it is somehow link to the algo but this is due to an upper TPD limit which is set to low to sustain the core clock at which it is set to run.
So my idea is to unlock the tdp and allow a higher tdp% so it won't throttle anymore. The card should me more stable and allow running at constant core clock (meaning faster too...) I don't think this will increase by a lot the tdp as the spike are just an effect of the throttling but that should stabilise the way the card run and consequently allow the card to run faster (however no miracle here... I am just speaking about having a stable overclock...)