Nvidia Says Crypto Drop Helped ‘Disappointing’ Q4

| Publish date: 02/17/2019
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Nvidia, which is a graphics card manufacturer based in the United States, has commented on its infamous fourth-quarter run. The company stated that the downturn in sales to digital currency miners is the main culprit behind the ‘disappointing’ quarter.

A ‘Disappointing’ Q4

According to the latest financial report from the tech company, it said that Q4 was able to make revenue of around $2.21 billion. However, the figure is reportedly down 24 percent from what previously was $2.1 billion. The latter, in particular, was obtained in the same quarter as last year. From there, it went down from $3.18 billion to about 31 percent in the previous quarter.

The titular graphics card maker said it is still feeling the effects brought by the significant drop-off in the digital currency market. In fact, it revealed that it still had a good amount of excess on its inventory and that it still had to be sold. Unfortunately, it is struggling in its goal to sell this leftover.

According to Jensen Huang, the founder and CEO at Nvidia, what happened to the company is merely a “turbulent close” as compared to what should have been a great year. With the combination of post-cryptocurrency excess channel inventory and the latest deteriorating end-market conditions, it is only expected for the company’s fourth quarter to display a “disappointing” attitude.

Making Significant Changes

In an earnings call dating February 10, the company’s very own executive vice president and CFO named Colette Kress stated that the issue had caused Nvidia to significantly reduce shipments. Otherwise, it will not be able to allow excess inventory to be sold. She even went to say that the company’s inventory is expected to normalize come first quarter, which is said to be in line with its very own forecast.

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The same report is said to provide revenue numbers intended for the last full year.

Apart from the never-ending inventory issues the company is facing, its own fundamental position and the markets it is serving are said to be strong. This is as far as Huang is concerned. He added that the “accelerated computing platform,” which Nvidia pioneered, is central to many of today’s most essential and fastest growing industries. This includes the likes of robotics, artificial intelligence, and even autonomous vehicles. With that in mind, Huang is confident that the company – contrary to popular belief – will be able to return to its former sustained growth.

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