Computer manufacturer Nvidia's warehouse dropped almost 17% in post-trading on Nasdaq on Thursday after the company's Q3 earnings were significantly…
Computer manufacturer Nvidia’s warehouse dropped almost 17% in post-trading on Nasdaq on Thursday after the company’s Q3 earnings were significantly lower than expected.
Nvidia (NVDA) specializes in making game consoles and digital currency mining, the process with which computers are used to create bitcoin and other crypto curves by solving complex mathematical problems.
But bitcoin prices have more than halved this year after a spectacular rally in 2017. It has hit demand for Nvidia’s technology, the company revealed Thursday, which led to the unprecedented listing of its products being raised.
“Crypto Cheers lasted longer than we expected,” said Nvidia CEO Jensen Huang at a conference call with investors Thursday.
Things may get worse before they get better with the price of bitcoin falling to its lowest level in a year. Nvidia said for the current holiday quarter it only expects to record revenues of $ 2.7 billion, compared to analysis forecasts of about $ 3.4 billion.
Nvidia is not the only major US technology company hit by the cryptoplanet. Rival chipmaker AMD (AMD) reported lower than expected earnings last quarter, which blames the cryoportic decline for a slowdown in sales. The company said it expects revenues to fall below analyst expectations in this quarter.
AMD’s stock was down 5% in after-trade on Thursday.
Founded in 1993, Nvidia began selling data cards as enhanced video gaming performance. But it has since been extended to larger and pricier areas. Today, a Nvidia product, DGX, can cost as much as $ 149,000.
Among Nvidia’s keybackers is Japanese tech giant SoftBank, whose 93 billion Vision Fund has a significant stake in the company. SoftBank’s share fell more than 3% in Tokyo on Friday.