Worst Performer in the S&P 500 at the End Of 2018
Chip manufacturing giant Nvidia has said that it expects to finish selling its inventory that remained unsold during the crypto bear market, Bloomberg reports.
Nvidia’s graphics cards are a popular choice for miners, as they perform better in carrying out mining tasks than a CPU or in-built graphics card. The chip manufacturer had built up a lot of stock in anticipation of higher demand from miners, but the bear market has made it such that there’s excess inventory, which the company believes it will sell by Q1 2019.
Chief Financial Officer Colette Kress, speaking at a company event, told analysts and investors that they are on track to sell these unsold parts, though the overall forecast for revenue is down from last year “with an average analyst estimate of a 4 percent decline.”
Nvidia’s Q3 report from last year saw CEO Jensen Huang speak of the inventory creation with respect to cryptocurrency mining.
The bear market and the resulting decline in purchases were described by Huang as a “crypto hangover”:
The crypto hangover lasted longer than we expected. We thought we had done a better job managing the cryptocurrency dynamics.
Mining demand had initially been very profitable for Nvidia, before the bear market hit the firm hard.
The crypto winter has affected miners, projects and investors alike, who are waiting on a turn in fortune. Fundstrat CEO Tom Lee has predicted that, based on the fundamentals, Bitcoin and the market in general will turn in roughly 6 months, after having previously said that Bitcoin’s true value lies in the $14,000 range.