GPU-Producing Firm Nvidia Fails to Increase Revenue Due to Falling of Crypto Market and More
American tech firm known for its competent graphic processing units, Nvidia, sees itself falling short on revenue in a short period of time according to news outlet, Tech Crunch.
In particular, the analysis of a potentially stagnated firm was based off of its stock prices. As per the claims made, Nvidia’s October 1, 2018 closing price of approximately $289 is now valued at only $148.4, which is shy of -50%. Considering their durable GPUs originally targeting gamers and eventually also offered to the crypto sphere, one would be surprised to see such a drop – maybe not so much. While the firm did target different markets in which GPUs would be beneficial and successfully made gains, it was all short-lived.
Based on the claims made, this is affirmed to be due to the current stance of the crypto sphere, as majority of the tokens got hit with depression. It has also been validated across competitors like Bitmain – who’s known to create chips primarily for crypto needs. Another possible reason why the firm is failing to overcome the plateau could be due to the increasing number of existing and new competitors including the likes of Facebook, Apple, Google and Amazon to name a few.
An interesting point was also made by Tech Crunch, which seems to converge into political tensions. China makes up a fair share of Nvidia’s target market. This being said, the team was quoted by the news outlet saying the following:
“The company is also concerned that deteriorating relations between the world’s two biggest economies are causing Beijing to double down on efforts to reduce reliance on U.S suppliers of key hardware such as chips […].”