Saturday, July 20, 2019

NVIDIA Suffers Crypto-Withdrawal, Dissapointing Earnings Call

Nvidia, one of the top GPU chip companies, is suffering from crypto-withdrawal. The company failed to adapt to the new panorama where GPUs are no longer in high demand from miners. This led to missing the last quarter forecast and to lower the current forecast. Nvidia’s stock also took a hit dropping 17%.

Nvidia Suffers from Crypto-Withdrawal

NVIDIA Suffers From Crypto-Withdrawal, Earnings Call Dissapointing

Nvidia, the top GPU manufacturer from the whole world admittedly suffers from crypto-withdrawal. This is what Jensen Huang showed during the latest earnings call yesterday. The company failed to deliver the forecasted results saying that cryptocurrency demand for GPUs had gone almost to zero.

The quarter numbers revealed an exacerbated number of chips in stock from the last generation (“Pascal”), directed to miners. But the cryptocurrency boom has already finished, due to the stagnant prices of cryptocurrencies. Also, the introduction of specialized cryptocurrency mining machines (ASICs) has slowed down demand.

Numbers were not so catastrophic, In fact, year to year revenue grew 21%, and the quarter to quarter revenue was up by 2 points. However, operating income decreased 9% from the last quarter. While Nvidia debuted its new line of GPUs this quarter, it seems that demand has not been so strong. Besides this, they have reported problems with the first batch of chips.

NVIDIA Failed To Adapt To The Moment

Jensen Huang declared that cryptocurrency had a lot to do with the results from this quarter. And also the forecast for the holiday quarter was lowered by this same situation. He stated:

“Our near-term results reflect excess channel inventory post the crypto-currency boom, which will be corrected. The crypto hangover lasted longer than we expected. We thought we had done a better job managing the cryptocurrency dynamics.”NVIDIA Suffers From Crypto-Withdrawal, Earnings Call Dissapointing

Related Article:  You Can Now Transfer Cryptocurrencies into Debit Cards with PayGlobal

What this means is that a lot of cryptocurrency oriented cards produced are still in inventory. This can be explained in two ways. First, the demand for GPUs to mine cryptocurrencies dried up; and second, NVIDIA failed to adapt their cost structure to make this cards more enticing for gaming markets.

NVIDIA card prices were sky high due to miners buying GPUs to use them to mine cryptocurrencies. But as this demand dropped, NVIDIA did not lower the prices to keep inventory low and clear the way for their new GPUs. Now they could rebadge them (a commonly used technique) to clear them from inventories. This could make them focus in their new line of GPUs, that have had problems in its first batch.

More Articles

Blockchain and Gaming Leaders Unite to Provoke Mainstream Adoption

A number of key companies in the blockchain and gaming industry met earlier this week in France, to mark a fresh alliance of the...

Binance to Open New Exchange in Singapore this Month

One of the world’s biggest exchanges, Binance has announced it would be setting up shop in Singapore soon, and there are many reasons to...

The Number of Bitcoin ATMs To Moon By 2024

Imagine this, your country had already installed multiple bitcoin ATMs in the cities, and people use virtual currencies as a regular form...

Sia Implements Hard Fork to End Bitmain’s Monopoly

In a fit of long contemplated response, Sia has finally taken action with a recent hard fork meant to estrange Bitmain and Innosilicon ASICs. David...

Boxing Legend Manny Pacquiao Enters The Crypto World

The eight-division world champion in boxing and now a Philippine senator, Manny Pacquiao has started to venture into the world of cryptocurrency by partnering...

Young Blockchain Entrepreneurs Headline the Forbes 30-Under-30 List

In this year's Forbes 30-Under-30 list, four youthful Blockchain and cryptocurrency entrepreneurs between the ages of 25 and 28 have been featured for their innovative work on the crypto financial world, asset management in digital currency and Blockchain scaling.

Leading Asset Manager in Europe Requests for Crypto Ban

The CEO of Allianz Global Investors, Andreas Utermann, has called for the pronouncement of cryptocurrency as illegal by regulators, according to a report. During a...

Nobel Prize Winning Economist Robert Shiller Says Cryptocurrencies Will...

Robert Shiller has said today that cryptocurrencies will be failed experiments, and compared them with other forms of failed currencies that appeared in the...

Elon Musk Gets Baited Into Crypto Twitter’s Bitcoin Battle

Bitcoin which surged from $4,150 to $5,000 in a single day seems to have lost people's interest in the subject. This time...

Floyd Mayweather And Dj Khaled Sued For Alleged Crypto...

Boxer superstar, Floyd Mayweather and well-known rapper and producer Dj Khaled were sued for an alleged involvement in a cryptocurrency fraud that started when...

Anthony Pompliano Predicts Bitcoin Will Fall Under $3,000

It's almost 2019, a new year for cryptocurrencies and its enthusiasts need to lay hold of any information they can get. Many reputable investors...

Latest Articles

Couple Pays For Breakfast Using Bitcoin, Community Finds This...

A Reddit user by the username u/portageco recently made a post in bitcoin's official subreddit. In his post, u/portageco boasts about how he paid...

Australian Woman Leads Adoption, Tours 10 Countries Spending Cryptocurrencies

Who says you can't go around the world spending cryptocurrencies? As many believe, cryptocurrencies are only good for speculations. But with a little research,...

Did A Physical Bitcoin Just Sell For $99k On...

As at the time of reporting, the listing on eBay had closed. This could be because the seller got a buyer or he decided...

Litecoin Now Approved In 30,000+ Stores

As cryptocurrencies gain ground, more and more technology-based firms find ways to incorporate the nascent technology into everyday life. Moon, prior to this time,...

Facebook Libra Coin did what you all wanted, and...

I think we need to take a step back and look at what’s really happening here… The primary issue with the entire Cryptocurrency industry is...

How To Shop on Amazon with Bitcoin – Step-By-Step...

Wondered how to shop on Amazon with bitcoin? Then here's how you can purchase goods on one of the largest e-commerce websites that ships...

How To Buy Bitcoin On Coinbase – Step-By-Step Guide

Buy Bitcoin on Coinbase instantly in the U.S., UK, Canada, or anywhere you are globally. Coinbase cryptocurrency exchange has enabled its customers buy the...

Grayscale Bitcoin Trust Boosts By 300%, Affects Oil &...

The institutional investment product, Grayscale Bitcoin Trust (GBTC), experienced a growth of more than 300% due to its outstanding performance since February, Forbes reports....

How To Create A Coinbase Account – Step-By-Step Guide

Create a Coinbase account with ease. Use this illustrative guide to create a Coinbase account for buying, selling, and storing cryptocurrencies. And you know...

$9.2 Trillion Transferred Using Bitcoins In 2.5 Years

Against present belief that bitcoin is only used for speculation, James McDowall, a crypto investor and advisor shared a metric about Bitcoin that's been...

Malware Posing as Movie File Manipulates Results and Steals...

A new form of malware posing as movie file was discovered last year and was designed to steal cryptocurrency and inject manipulated results into...

No-fee Mobile Trading App Quantfury Increases Crypto Support with...

The no-fees mobile trading app Quantfury has been expanding its crypto services lately, most notably with the addition of the DASH cryptocurrency. The coin...