The value of the Nvidia company for the first time since the end of 2017 has fallen below $ 100 billion. The price fell 18.8% on Friday alone, and the campaign currently costs $ 164.4. By comparison, in September, the stock price hit a record high of $ 280.
What happened when investors began to shake up the technology giant's actions – the published results were significantly worse than analysts had expected.
Nvidia has promised $ 2.7 billion in sales, which is considerably lower than analysts predict to $ 3.4 billion. Instead of boosting sales, the maker of graphics processors is expected to cut sales by more than 7 percent compared to last year's last year.
The market is flowing after a cryptoanalytic boom
The past kryptovaliut boom led to a huge demand for video cards. CryptAudio makers took the fastest Nvidia video cards to pay for newly installed cryptoanalysts, such as ether (ETH), in just a few months, The Motley Fool writes.
However, the ether, which still costs about $ 1,400 in January, currently costs only $ 173.
The same video card, which last year accounted for $ 60 to $ 80 in criptoscales per month, would currently reduce the value of only $ 10 – unpaid electricity costs.
As a result, kryptovaliut boxes are no longer willing to buy expensive equipment.
In addition, video cards compete with specialized ASIC devices specifically for the excavation of cryptolite.
Then the Nvidia gold core was eliminated.
At the moment, Nvidia is also sitting in a huge stock of video processors. Nvidia manager Jensen Huang explained: "In the third quarter, we began to have excess stocks after the crypt-hangover."
According to him, the decline in prices was expected, but now that prices have already fallen, "customers will be back and buy" is expected.
Colette Kress, chief financial officer of Colette Kress, said the company's gaming business did not live up to expectations and, due to the expired kryptovalit boom, stocks began to pile up. Video card prices, which were significantly higher due to kryptovaliut cassette players, fell less quickly than expected.
Nvidia introduced the next generation of so-called GeForce RTX video cards, which are the most expensive and designed for the most intriguing autumn computer gamers. However, most of the stock is made up of older generations of mid-sized graphics processors.