Nvidia's CEO said at a recent conference in Tel Aviv that the company did not intend to enter the crypto-currency market. Calcalistech reported that after the fall in crypto-currency prices, the American chip manufacturing giant had declined in the last quarter of 2018.
Nvidia Sneaks Wounds After Crypto Coins Price Drop
Jensen Huang, CEO of Nvidia Corporation, recently announced that the company has no plans to enter the virtual money sector. According to a report by Calcalistech, Huang's statement revealed that the company was not ready for the industry.
The CEO, however, said he was trying to look optimistic for the virtual money industry:
“I believe the crypto currency has a place. Hopefully, I hope you will find different algorithms that require a little less computation and they won't need our GPUs in the future, but I believe that the crypto currency has a place in the future. "
The chip manufacturing giant experienced an explosion in sales. Nvidia has made GPU cheats for digital money miners in 2017 with the increase in the price of the crypto currency. The demand for GPUs increased and the company was over-increased and increased production.
Inventory of Non-Sold Products
However, when the price of the virtual currency fell and the decrease in demand for GPU chips had a negative impact on the company, there were many unsold stock chipsets the company was still trying to sell.
With the price drop of the virtual currency, Nvidia's share fell down to $ 127 a share and hit a big hit. Towards the end of the fourth quarter, the chip maker had to cut revenue estimates.
However, Huang said that the company's unsold inventory will be disposed of in April 2019. The CEO also expressed optimism on delivery, saying the recovery process is going on and will soon be the usual job.
Chipset Manufacturers go away from Crypto Money Mining
Nvidia is not the only chip maker to give up the crypto-money mining scene in view of the long-standing bear market in 2018. Like Nvidia, Taiwan-based Gigabyte Technology Ltd. he thinks it would be difficult for a long time to get a huge profit from the virtual money boom.