Cryptocurrencies surprised Nvidie twice

The report summarizing Nvidia’s financial results for the third fiscal quarter of 2019 has an interesting mention that cryptocurrencies surprised Nvidie twice.

In ancient times … and in fact, just 18 months ago, in the summer just beginning, the graphics market was shaken by a multitude of people hungry for easy earnings. They bought mid-range and high-end GPU models on a massive scale, and then harnessed them to “mine cryptocurrencies”. This resulted in shortages on the market, low availability and, as a result, higher prices for virtually every model, which soared by up to 200%. It was then that both Nvidia and AMD were surprised by being unable to meet market demands, which they tried to fix. However, over time, cryptocurrencies went down and the profit decreased week by week, so the huge demand only became small in practically a month.

Here is a shortened version of the story, which indicates that Nvidia has been surprised not once… but twice. Now it has overcrowded warehouses (well, not in the case of the GTX 1080 Ti), which will take up to two quarters to clear. All because the “crypto-hangover lasted longer than we expected.” When prices fell, we hoped that demand would increase faster. ” This, however, did not recover so quickly, and Nvidia’s sales segment in terms of gaming and cryptography did not live up to expectations. Nvidia has even tried to stop shipping mid-range GPUs to the channel to reduce inventory … and increase the price.

However, the “loss” that the company incurs has certainly been rewarded with results in previous periods.

Also read: Nvidia about failing GeForce RTX cards

Source: Venturebeat