As per the reports of Reuter, the sales of Nvidia for the holiday quarter dropped down due to evaporation of the crypto mining boom. The Santa Clara – California based Company stated that the sales have missed the desired goal for the third quarter. The market shares of Nvidia has plunged around 17 percent to 168.32 United States dollars.
Nvidia has been a leading supplier of gaming cards; upgrading the graphics cards for decades. Over the last few years, Nvidia cards are adopted by the virtual currency miners in order to convert their bits into bucks.
Viewpoint of Nvidia
Jensen Huang, the chief executive officer at Nvidia, said that the prices of the company’s gaming cards had risen due to the temporary madness of cryptocurrency among the people, this led many buyers away. As soon as the trend went away, the prices of the gaming cards came lower as before. The company was expecting the sales volume to rise again as the users came back after that prices hype.
However, the process was slower than expected by the company. Huang expects the situation to come normally by the end of this quarter. He said that the hangover of cryptocurrency lasted more than expectations. The company thought that they had done a good job handling the dynamics of the cryptocurrency.
Impact on Sales
The hangover of crypto resulted into a stop on the shipping of mid-range chips to the retailers; they’re in the same place for many days – in warehouses and company’s stores. As per the company, supply of inventories expanded by five percent in the third quarter; led to $70 million profit. The same provision went three times in the first nine months of the fiscal year, i.e. over $124 million.
By the end of the third quarter, on October 2, the net income of Nvidia is close to $1.23 billion, which was around $838 million a year before. The company’s share also lifted up from $1.33 per share to current value – $1.97 per share.