Nvidia, the giant chip manufacturing company has announced that it expects to wind up the selling of its inventory which was unsold during the crypto bear market, reports as per the Bloomberg that was published on March 19.
The graphics cards of Nvidia are very much popular and remain the top choice for miners due to their performance which executes the mining task in a much better way than the CUP or inbuilt graphics card. Because of the higher demand for the chip from the miners, the company had created a lot of stock, but due to the crypto bear market, a huge part of inventory was unsold. Now, the company expects that the excess leftover inventory will be sold by the first quarter of 2019. The company is in progress of selling them.
There was enormous market growth noticed by Nvidia along with huge demand for crypto mining hardware from 2016 to 2018. However the company was affected significantly due to the extended crypto bear market, and the performance of the stock was lowest in the S&P 500 during the end of 2018.
Chief Financial Officer Colette Kress told analysts and inventors that the company is certain of selling the leftover inventory. The revenue estimation has slightly fallen down from its previous year and the average estimation of the revenue by the analyst to reduce by 4 percent.
The California headquartered computer hardware manufacturer stated that the company is still working over the supply of unsold inventory and is confident that the company will be able to sell the inventory.
Reports of Bloomberg says that CEO of Nvidia Jensen Huang is now working hard to assure Wall Street that the revenue of the company will grow fast over a 3 years growth once the build-in inventory is bought out. The announcement of Q3 reports of 2018, of Nvidia, made them publish the news about excess leftover inventory and was defined by the CEO Huang as the crypto hangover. The report of CNBC also mentions that data segment of Nvidia did not meet the expectations of Wall Street in 2018, although their revenue was increased by 58 percent.
“The crypto hangover remained for a long period than our prediction. We had considered that we had done a good job by managing the cryptocurrency movement.”
Miners, investors and projects were widely impacted by the crypto bear market. Major companies of the crypto mining industry were also hit badly, like Bitmain, the Chinese application specific integrated circuit (ASIC) manufacturer had to close some of its offices and even reduce staff. The company shut both its offices located at Israel and Amsterdam as an attempt to lower costs.