Nvidia Still Trying to Sell Surplus Mining Equipment After 2018 Bear Market
Global processing chip manufacturer, Nvidia Corp, is still trying to recuperate losses from the devastating crypto winter that swept across the crypto market last year.
In the wake of the global crypto market capital sliding by nearly $700 Billion over the course of 2018, crypto mining became one of the worst affected industries as equipment running costs quickly began to outweigh block rewards. As a result of this, the demand for mass-produced mining rigs and graphics cards also began to slide, leaving Nvidia stuck with an amassment of unwanted hardware.
In a conversation with Market Watch, Nvidia’s Chief Financial Officer, Colette Kress, elaborated further on the specific reasons for Nvidia’s rapid decline,
“Gaming revenue was short of our expectations, and our fourth-quarter outlook [was] impacted by excess channel inventory of midrange Pascal products.”
She went on to add that, “We believe this is a near-term issue that will be corrected in one to two quarters, and remain confident in our competitive position and market opportunities.”
According to a recent report by Bloomberg, Kress has now confirmed that Nvidia is still on track to sell off its leftover inventory by the end of Q1 and anticipates that the company’s revenue will be,
“flat or slightly down from last year for fiscal 2020… [but] will quickly improve upon a three-year surge once built-up inventory is used by its customers”
Since the new year, Nvidia stocks have already started to bounce back adding on 30.63%. While the US-China trade war continues to weigh heavy on Nvidia’s graphics card assembly lines in Asia, Bitcoin’s triumphant return above $4,000 could help boost mining rig sales.
In other news, Nvidia has also announced its recent $6.9 Billion acquisition of Mellanox, a leading interconnect solutions provider. The takeover claims to ‘unite two of the world’s leading companies in high performance computing’ and will accelerate Nvidia’s progress in the emerging AI and Big-Data market space.