Nvidia's value for the first time since the end of 2017 has dropped below $ 100 billion. On Friday, the price dropped by 18.8%, and the campaign currently stands at $ 164.4. For comparison, in September, the stock price reached a record $ 280.
What happened when investors began to shake up the tech giant's shares – the published results were significantly worse than expected by analysts.
Nvidia promises sales of $ 2.7 billion, which is considerably less than analysts estimate for $ 3.4 billion. Instead of rising sales, the graphics processor maker is now expected to cut sales by more than 7 percent over the past year.
The market is flowing after the cryptoanalytical boom
The previous failure of the crypt has led to a huge demand for graphics cards. CryptAudio manufacturers grabbed the fastest Nvidia graphics cards to pay freshly framed cryptanalysts such as ether (ETH) in just a few months, writes The Motley Fool.
However, the ether, which still costs around $ 1,400 in January, is currently only $ 173.
The same graphics card, which last year presented a template of $ 60 to $ 80 a month, would currently limit the cost of just $ 10 – unpaid electricity costs.
As a result, crippled treasurers are not currently willing to buy expensive equipment.
Additionally, graphics cards compete with specialized ASIC devices specifically for copying cryptoolites.
So the gold core of Nvidia was destroyed.
Nvidia is also currently sitting on a huge number of videoprocessors. Nvidia manager Jensen Huang explained: "In the third quarter, we began to have surplus stocks after the crypt."
According to him, the fall in prices was expected, but now that prices have fallen, "customers will come back and buy" is expected.
Colette Kress, Chief Financial Officer of Colette Kress, said the company's product line did not meet expectations, and because of the exhausted cryptobitic boom, accumulated stock began to accumulate. Video card prices, which were significantly higher due to cryptographic cartridges, dropped less rapidly than expected.
Nvidia introduced a new generation of so-called GeForce RTX graphics cards, which are the most expensive in the autumn and designed for the most exciting players on the PC. Most stocks, however, consist of older generations of mid-range graphics processors.