Nvidia: the demand of the miners for the video card dropped to almost zero

Graphics cards today is better for games than for mining. So at least they will bring you pleasure, especially given the drop in profitability of mining of Ethereum. From correction of the stock market profit decreases not only the home of miners, but giant industry Nvidia. In its latest financial report the company said that demand for graphics cards among the miners fell to almost zero.

Mining is losing popularity

In the document there is a note Nvidia CEO Jensen Huang, who noted “a significant excess of unsold goods.” Huang assured that the manufacturer will be able to “correct” the excess.

In other words, the boom of cryptocurrencies has increased the demand on the graphics card, and with it the price was raised the GPU. However, once the demand disappeared, the price of video cards are unable to decline quickly, which the company failed to attract a significant number of customers.

“CryptoPhone” lasted longer than we expected. We thought, anticipating the possible manifestations of the impact of cryptocurrencies on the market.

The reserve stock of the company (the total value of unsold products) rose to 124 million dollars in the first 9 months of this year. This led to the decrease in gross profit Nvidia 1.8 percent to 60.4 percent. The decline was also a result of USD 57 million loss due to the obsolescence of previous generations of GPU, which had previously been so popular with miners.

Image source — Cointelegraph

Publication of financial report for the third quarter had a negative impact on the shares of Nvidia. In a few hours the share price of the company fell by almost 16 percent. However, total revenue in the third quarter is still higher than the same period in the previous year was 3.18 billion to $ 2,64 billion dollars.

On the prospects of mining in 2019 read here. And not to miss the chance to collect cheap cryptoform, visit the chat on the iron.

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