Nvidia Suffers Through Fourth Quarter, Blaming the Loss of GPU Crypto Miners as Buyers

Most of the focus on the cryptocurrency industry’s bear market has been on the impact made on exchanges and investors, losing value, and even shutting doors.

However, mining companies have been having lower performance as well, which impacts the companies that make mining equipment, like Nvidia. According to Nvidia, their fourth quarter earning suffered because of the crypto winter that has impacted these miners.

Over the course of 2018, Nvidia managed to see revenue gains. Even though they still had progress during the year, the fourth quarter was “disappointing,” at best.

During Q4, which concluded on January 27th, their revenue ended up at $2.21 billion, though last year’s Q4 was at $2.91 billion. In comparison with Q3, the revenue is about 31% less. Jensen Huang, the founder and CEO of Nvidia, said,

“This was a turbulent close to what had been a great year. The combination of post-crypto excess channel inventory and recent deteriorating end-market conditions drove a disappointing quarter.”

Originally, the company expected that the revenue would be down slightly, but the massive loss was still slightly higher than the original prediction of $10.8 billion revenue.

Considering how lucrative the year was as a whole, the end to the year was a “disappointing finish. However, in a conference call with the investors, Huang commented,

“But the China economy is in the final analysis a growth company, so we’re looking forward to it recovering. And gaming is one of the most important pastimes of their culture.”

Beyond the mining chips offers to the crypto industry, Nvidia also has other growth areas upon with they are innovating, like data centers and self-driving cars. Considering the lower sales from Intel as the biggest supplier of data center-based chips, analysts had a lot of fear over what the industry would do to Nvidia.

The data center business with Nvidia seem to avoid the slowdown, even though they had less revenue than the year before. On the call, Huang added,

“There was just a level of cautiousness across all of the enterprise customers and the cloud service providers that we’ve not experienced in a while. It has to be temporary. The computing needs of Earth have certainly not been satisfied with what we shipped last quarter.”

As a result of Q4 losses, the net income of Nvidia has fallen to $567 million, which is approximately $0.92 per share. A year before, the net income was $1.12 billion, which was $1.78 per share.

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Krystle M
Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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