Wednesday , October 5 2022

Nvidia giant Crypt-hunter-based technology is not worth digging coins Business


The value of Nvidia's company for the first time since the end of 2017 has fallen below 100 billion dollars. The price dropped 18.8% only on Friday and today the campaign costs $ 164.4. By comparison, in September, the stock price reached $ 280.

What happened when investors began to sink the stock of technological giant – the published results were significantly worse than expected by analysts.

Nvidia has pledged sales of $ 2.7 billion, which is significantly lower than analysts expect for $ 3.4 billion. Instead of rising sales, the graphics processor maker is expected to cut sales by more than 7%, compared with last year.

The market is flowing after a crypto-analytical explosion

The previous kryptovaliut explosion has led to a huge demand for graphics cards. CryptAudio manufacturers grab Nvidia's fastest graphics cards to pay for cryptanalysts such as ether (ETH) in a matter of months, writes The Motley Fool.

However, the ether, which still costs about $ 1,400 in January, today costs just $ 173.

The same graphics card, which last year was worth $ 60 to $ 80 a month, will now reduce the value of just $ 10 – unpaid electricity costs.

As a result, Cryptoblocks are no longer willing to buy expensive equipment.

In addition, video cards compete with specialized ASIC devices specifically for digesting cryptolites.

The Nvidia gold core was lost.

At the moment, Nvidia is also in a huge inventory of video processors. Nvidia's CEO, Jensen Huang, explained: "In the third quarter we started to have surplus stocks after theft."

According to him, the fall in prices was expected, but now that prices have already declined, "customers will return and buy" is expected.

Colette Kress, Chief Financial Officer of Colette Kress, said the company's gaming business did not meet expectations and because of the explosion of cryptovalit, stocks began to accumulate. The prices of video cards, which were significantly higher due to the kryptovaliut player cassettes, decreased less rapidly than expected.

Nvidia unveiled the next generation of so-called GeForce RTX graphics cards, which are the most expensive and designed for the most exciting computer players in the fall. However, most of the inventory consists of older generations of middle class graphics processors.

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