According to Reuter Nvidia Corp (NVDA.O) shares fell 5 percents during hours of trading of Thursday session after the chip maker said “cryptocurrency-fueled demand had dried up and it forecast sales below Wall Street targets, overshadowing quarterly results that otherwise beat expectations.”
Company stated about situation in its Financial Results for Second Quarter Fiscal 2019
-80% below expectations of cryptocurrency-related revenue in Q2, 2018
Nvidia previously had forecast sales for cryptocurrency chips for the fiscal second quarter ended July 29 of about $100 million. On Thursday it reported actual revenue of only $18 million.
“We benefited in the last several quarters from an unusual lift from crypto,”
CEO Jensen Huang said on a conference call with analysts,
“but at this time, we consider it to be immaterial for the second half” of the fiscal year.”
The cryptocurrency news and the lower-than-expected forecast clouded an otherwise strong quarter, including Nvidia’s sales of chips to data centers, for companies like Amazon, Microsoft and Google.
GPU demand for cryptocurrency mining matters might be currently low because of accelerating ASICS production and current cryptomarket crash.