Cryptocurrency
Nvidia’s Crypto Gold Rush Goes Bust in Lackluster Forecast via @bloomberg
As reported by Bloomberg, “Nvidia Corp.’s nine-month crypto gold rush is over. “Sales of graphics chips to miners of cryptocurrencies like Ethereum dried up faster than expected, the company said. For a second quarter in a row, investors ignored Nvidia’s growth in its main markets and ditched the stock. “Shares in Nvidia were down 3.7 percent […]
As reported by Bloomberg, “Nvidia Corp.’s nine-month crypto gold rush is over.
“Sales of graphics chips to miners of cryptocurrencies like Ethereum dried up faster than expected, the company said. For a second quarter in a row, investors ignored Nvidia’s growth in its main markets and ditched the stock.
“Shares in Nvidia were down 3.7 percent pre-market at 6:27 a.m. in New York Friday.
“’Our core platforms exceeded our expectations, even as crypto largely disappeared,’ founder and Chief Executive Officer Jensen Huang said Thursday on a conference call. ‘We’re projecting no cryptomining going forward.’
“The mining of cryptocurrency tokens, computer code that carries value in online transactions, had helped stoke demand for graphics chips. These types of processors excel at making multiple small calculations at the same time, the type of capability that’s well-suited for the creation of Ethereum and other cryptotokens. That helped boost demand for the Nvidia’s GeForce chips that are so prized by gamers for the realism they produce, forcing up prices and causing shortages.
“Nvidia said it had expected about $100 million in sales of chips bought by currency miners in the fiscal second quarter. Instead, the total was $18 million in the period, and that revenue is likely to disappear entirely going forward, the company said.”