Record: Nvidia showed the worst performance in the S&P 500 index because of falling mining-industry

A sharp decline in the profitability of the mining of cryptocurrencies is extremely negative impact on the manufacturers of video cards. The company Nvidia problem is also not spared. In the 4th quarter of 2018 the company is currently experiencing a massive sale of its shares and a fall of 54 percent. As CNBC reports, the company showed the worst rating in the S&P 500 index.

2016 to September 2018 the market value of Nvidia significantly increased from 14 to 175 billion. This was due to the rapid growth of demand for graphics processors in the areas of artificial intelligence (AI) and the mining of cryptocurrencies. In may, the firm first reported on the profits from cryptocurrency mining, predicting the decrease in the second quarter demand of miners two thirds.

Initially, the company predicted another decline in demand in the third quarter of 2018, but judging by quarterly report, sales in this sector fell to zero. CEO of Nvidia Jen-Hsun Huang said that “short-term results reflect the company’s surplus after the cryptocurrency boom, and therefore will be adjusted”.

According to Huang, the fall of the market kriptomayning left the company something like “CryptoPhone”. Cryptocurrency madness led to higher prices for Nvidia. But once the demand disappeared, the company does not have enough time to adjust prices and attract clients who were looking for a more affordable card.

In addition to the collapse of a kriptomayning segment data centers, Nvidia has also failed to meet the expectations of wall street, though revenue grew 58 percent. To date, the share price of tekhgigant is around $ 129.

Suffered all the chip manufacturers from the PHLX semiconductor Index, which tracks major equipment manufacturers, including Nvidia and AMD. For the last three months the index lost 20.37 percent. AMD share for the same period has lost more than 45 percent.

Cointelegraph recalls that due to the declining profitability of mining a cryptocurrency miners left the market, which led to falling demand on the GPU chips and lower prices for the leading graphics card manufacturers. More data look at cryptodata.

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