Nvidia, an American Graphics Processing Unit (GPU) designer, is said to have generated revenues in access of $1.95 billion, states Market Insider in one report.
RBC analyst Mitch Steves said that even though the company’s official stance has been that it had generated only $602 million in revenue through its crypto venture, the actual figure, in his opinion, is atleast three times higher.
“We think NVDA generated $1.95 billion in total revenue related to crypto/blockchain. This compares to company’s statement that it generated around $602 million over the same time period.”
Last year, Colette Kress, Nvidia’s Chief financial officer, told the company’s investors not to expect any revenue from its crypto venture. Around the same time, the company had pulled the shutters over its cryptocurrency business, leading to a decline in its stock price.
In August last year, Kress had said:
“We believe we’ve reached a normal period as we’re looking forward to essentially no cryptocurrency as we move forward. Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million, and we now expect a negligible contribution going forward.”
The crypto market was itself on the decline throughout 2018, mainly due to the meteoric fall of Bitcoin, which contributed to a huge chunk of the combined market cap being wiped off.
Market experts had attributed the firm’s decline due to this phenomenon but not everyone shares their opinion with Nvidia failing to put sales up on the board.
Mitch Steves had previously stated that Nvidia’s revenue generation, from April ’17 to July ’18, was an estimated $2.75 billion, although he had suggested that these numbers could not always be fully confirmed.
However, Nvidia’s stock price drop from $160 to $131 in less than a week, from Jan.25 to Jan.29, is surely something for the firm’s management to focus on, being a major American tech. corporation.
In conclusion, industry analysts believe that the company’s downward spiral is most likely due to their negative trend of GPU sales than the volatile crypto market.