Long-time business with graphics cards, which are used for Mining, the company Nvidia has brought extreme growth in profit. The current bear market, however, Mining is noticeable, what makes the sales in the second quarter collapse. Now the company wants to adapt its crypto strategy.
As fast as the Wind turns: In the past year, both the graphics card manufacturer Nvidia as well as main competitor, AMD could have a record-breaking growth. This was due primarily to the increased demand for high-performance graphics cards for Mining. In the first quarter of 2018, the revenue from the Mining business exceeded expectations.
What was there to be feared, however, joined a short time later, as a bitter reality. With the continuing bear market and the associated decline in demand, the Wind turned. Accordingly, the prices for Mining Hardware to decline rapidly, which was also the case of graphics cards from Nvidia is noticeable. So you had to switch due to the good development at the beginning of the year, apparently, and much to a lot of graphics cards produced. Now, you remained on the a lot of big deal of sitting.
Nvidia pulls the ripcord – No forecasts for Mining Hardware
The difficult Situation around the Mining graphics cards was also reflected in the share price of Nvidia shares. So, the share price fell due to the announcement of the quarterly figures for Q2 in the last week, around five percentage points. Now the company is responsive and stops the further production of graphics cards to Mining purposes.
“Our revenue forecast had expected that on the crypto-Mining products are around to contribute 100 million US dollars. In fact, the crypto-specific product sales were 18 million US dollars. While we had previously assumed that crypto-currencies are in this year is important for us, we now have no forecasts, and more“,
Colette Kress, NVIDIA Chief Financial Officer, said.
A year ago, the tones had sounded yet very different. At that time, the then CEO Jen-Hsun Huang let it be known that crypto-currencies are here to stay and companies will continue to rely on graphics cards for Mining. The example of Nvidia, you can recognize so well as a whole year, including the ascent and descent of the mind can change the strategy of a company completely.