Nvidia, the Santa Clara-based American technology company, says it’s still suffering from loss of revenue due to the “death of crypto” roughly one year ago.
Nvidia Is Free… Free-Falling…
In late 2017, bitcoin and other cryptocurrencies made a serious mark on the financial industry by reaching their highest prices to date. Bitcoin, for example, ultimately shot up to about $20,000 per unit after a year of steady gains, but beginning in January, the cryptocurrency began to experience drops that ultimately brought it down to roughly $6,000 by the summertime.
Five months later, come Thanksgiving, bitcoin was trading in the mid-$3,000 range, marking a 70 percent loss of value. Several other coins, such as Ethereum and EOS, fell even further, experiencing losses of roughly 80 or even 90 percent in some cases.
While crypto has been doing better since last April, the tech firm has stated that its revenue hasn’t fully bounced back. In 2017, when crypto was doing well and surging faster than anyone could have predicted, the company was selling graphics cards to individuals and companies alike suddenly interested in the process of “mining” and extracting new coins.
However, those days are long gone, and with the price drops of all mainstream crypto in 2018, Nvidia reports that general interest is down for the count. The company has released its second quarter earnings for the year, and income is still down by approximately 17 percent in comparison with this time during 2018.
The good news is that earnings weren’t as low as analysts initially predicted. Overall, they were expecting something at around $2.54 billion, but income ultimately came in slightly above that at $2.58 billion. As a result, Nvidia stock shares have risen by approximately seven percent in the last 24 hours alone.
The report shows that the company’s gaming products are still the biggest money-makers for Nvidia. Overall, these products have brought in more than $1.3 billion – a massive jump from the $1 billion figure listed during the previous quarter. Gaming products currently account for more than 50 percent of the company’s total sales and revenue.
Things May Go Back to the Way They Were
However, even the gaming division is suffering financially given that the total is down from $1.8 billion approximately one year ago. Nvidia chief financial officer Colette Kress, however, is confident that the arena will bounce back, especially with the release of Nintendo’s new Switch console (which utilizes Nvidia technology) and the release of laptop products built with Nvidia properties. In addition, the company is also witnessing the release of the “Switch Lite,” which should help to get it back on its feet.
Kress describes Nvidia’s operations as “returning to normal,” which may have to be good enough for the company right now given the implications of the ongoing U.S.-China trade war that’s likely to affect income streams even further.
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