Nvidia’s Surplus Of Crypto Mining GPUs Apparently Causes The Chip Producer To Be Worst S&P 500 Performer
Nvidia Has Been Reported As The Worst Performer In The S&P 500 At The End Of 2018
Nvidia has been reported as the worst performer in the S&P 500 at the end of 2018Nvidia which is a chip manufacturing Giant has gone on to say that it is expecting to finish the sale of its current inventory that had remained unsold for an extended period during the bear market in the crypto, this is according to a report by Bloomberg.
More On The Nvidia And Its Products
The company has been creating graphics cards which have become a very popular commodity for the miners within the market, as they have been designed to perform much better when they are carrying out the mining tasks, this is compared to the CPU or even the inbuilt graphics cards.
As a result, the chip manufacturer went ahead to build a stock of these products in the anticipation they will gain a high demand from the various miners in the market. Unfortunately, with the bear market, it led the company to have an excess of inventory which the company has come to believe that they will be selling till the end of this first quarter of the year.
Colette Kress, who is the Chief financial officer, while speaking at the latest company event, went ahead to tell the investors and the analysts that the company is actually on track with the sale of the products in inventory. But the overall forecast of the company revenue seems to be a little down from the previous year — having a 4% decline as an average analysis of the company performance.
With the third quarter report for the company presented last year, saw Jensen Huang, the CEO, speak of the company inventory creation with so much respect to the crypto mining. But with the bear market that resulted in a massive decline in the number of products being purchased was described by Huang as being a crypto Hangover, one that seems to have lasted longer than it had been anticipated by many.
‘The crypto hangover lasted longer than we expected. We thought we had done a better job managing the cryptocurrency dynamics.’
Initially, the mining demand in the company had become a very profitable affair just before the bear market went ahead to hit the firm very hard.
It has been referred to most as a crypto winter which has dramatically affected the miners in the market, investors and the projects alike, who have been anticipating to make a fortune in the vibrant market.
Tom Lee who is the CEO of Fundrat went ahead to predict that, according to the fundamentals, the market together with Bitcoin will finally turn in about six months, after he had said this previously the Bitcoin lies in the range of $14,000.