Left with a surplus of unsold graphics cards, Nvidia said that due to the “post- cryptocurrency hangover” causing inflated prices for the company’s GPUs, miners stopped buying the company’s GPUs.
CEO Jensen Huang said that volatility has made people prefer waiting for stabilized prices and in this case it seems to have taken longer than they expected. The CEO further expressed that they believed that they had managed the cryptocurrency well; however with the fall in prices they also went down. The executives informed that the sharp fall in sales in August has still not normalized.
The estimated revenues of $3.25 billion for the graphics in third quarter were hardly met as the actual revenues stood at $3.18 billion.
The expectation that the market will return to normal is still intact according to the CEO pertaining to the upcoming state of the right level being met.
With a single Bitcoin reaching $20,000 in value last year, prices of the company’s GPUs started to inflate. In order to generate digital gold, Nvidia graphics were being bought by miners to mine the virtual currency.
However, with Bitcoin now valued at $5,500 a coin it can be concluded that the market of cryptocurrency has plummeted.