Nvidia, global gaming computer chip maker, reported revenue down 24% from last year, which was its first decline over the past five years. This news was expected given the shape of the crypto markets over the past year. Despite this, the stock price was up 6% in extended trading on the 14th Feb 2019. In a press conference call, the Chief Financial Officer (CFO) and Executive Vice president, Colette Kress said one of the reasons was driven by, predictably, the crypto space;
First, post crypto inventory of GPUs in the channel caused us to reduce shipments in order to allow excess channel inventory to sell through.Nvidia, CFO, Colette
The Chief Executive Officer (CEO) and founder Jensen Huang, also made reference to the crypto bear market;
“The combination of post-crypto excess channel inventory and recent deteriorating end-market conditions drove a disappointing quarter.CEO, Jensen Huang
Nvidia is expecting to have a strong Q1 this year focusing its efforts on Robotics, AI and autonomous vehicles.
Weaker demand in the mining space may continue, however, there are bullish developments on the horizon, that may bring back the crypto mining game again! #ETF #Bitcoin $BTC