Nvidia Shares Drop Hard
The sharp drop in the profitability of Bitcoin and crypto mining is pushing graphics processing units (GPU) like Taiwan’s Nvidia. 4 of 2018. In the fourth quarter, the company sold most of its shares.. According to CNBC’s December 21 report, the company had its worst performance in the S&P 500 index, with the stock’s price dropping by 54%. Increased from $14 billion to $175 billion driven by demand for GPUs in (AI) and cryptocurrency mining. With sales to miners projected to drop by two-thirds in the second quarter, in May the company announced its first-ever crypto mining profit. initially predicted a negligible cut in mining-related sales in the third quarter. Nvidia CEO Jensen Huang says the company’s “short-term results reflect excessive channel inventory following the cryptocurrency boom that will be corrected.” left the slumber. The cryptocurrency craze drove prices up for Nvidia’s GPUs, but once demand faded, prices didn’t drop fast enough to attract customers waiting for more affordable GPUs.
Revenue per CNBC. Despite a 58 percent increase in crypto mining sales, Nvidia’s data center segment failed to live up to Wall Street’s expectations.. Today, Nvidia stock is down 4.09% to close at $129.57.
AMD Has Experienced a Similar Situation
Chip stocks have generally performed poorly this year. The PHLX Semiconductor Index, which tracks major hardware manufacturers such as Nvidia and Advanced Micro Systems (AMD), has decreased by 20.37% in the last three months.. AMD’s share price fell 45.42% in the same period.
The post-mining boom and the gap in hardware caused a significant drop in prices.. AMD’s popular Radeon RX580 graphics processing unit (GPU), widely used by crypto miners, is currently selling for $180, down 67% from an average price of around $550 in February 2018.
Available Declining profitability in the bear market has caused some miners to leave the business. Some mining firms in China are selling outdated hardware by the kilogram at a price close to the closing price to reduce losses.. According to local reports, the earnings from mining are no longer sufficient to cover electricity and other related costs.