Nvidia and AMD are confronted with a decline in turnover due to the cryptocurrency crisis

Nvidia Corp., one of the world’s largest manufacturers of computer graphics cards, announced its results for the third quarter of the fiscal year, explaining a decline in demand due to the decline in cryptocurrency mining. That is followed by the collapse of all cryptocurrencies downtrend throughout the year 2018.

Nvidia and AMD are confronted with a decline in turnover due to the cryptocurrency crisis

The Californian company’s share dropped to 19% as they also reported that sales were lower than expected at 3.1 billion euros, 21% more than the 2.6 billion euros of the previous year and only 2% more than the 3.2 billion euros of the previous quarter. The company’s analysts forecast profits of over 3.4 billion dollars.

Jensen Huang, founder, and CEO of Nvidia commented in the document: “Our short-term results reflect the surplus channel holdings after the cryptocurrency collapse. However, our market position and growth opportunities are stronger than ever.

Related:   TPCAST 2.0 ​​Lattice Semiconductor Wireless VR A Road to Success

Most of this delay in sales is expected to be due to lower cryptocurrency extraction. The depreciation of crypto coins, such as Bitcoin since the turn of the year, has also led to a slump in demand for Nvidia processors used to extract crypts.

Later, in a conference call announced in the document, Huang stated that “the hangover of crypto coins lasted longer than expected,” adding that “as prices fell, we expected demand to rise faster. Later, on the same call, Huang also admitted that the company thought it “had done a better job of managing the dynamics of crypto coins.