In the past, GPU manufacturer Nvidia used the “crypto winter” as an excuse for its negative earnings report but now the bear market seems to have ended, NVDA shareholders would find it difficult to explain why their stock has refused to adjust to the new trend but chooses to continue plummeting.
Nvidia’s Stock; A Source Of Worry
Nvidia stock sank in the past year and even its upcoming earnings don’t look good. The company’s stock is neither here nor there, just hanging on for dear life right at the edge. A lot of opinion concerning the company’s weakness suggests that its data center division is to be held responsible.
Nvidia’s first quarter of the fiscal year 2020 has just come to an end. Before now when the company experienced a rise in sales followed by a decline, partly as a result of crypto volatility, CEO Jensen Huang pointed out that the increase in data center business is evidence that proves the company has other ways of adding value aside gaming chips. Sadly, upcoming reports from the company may also show a decline in that division.
Nvidia Revenues Falls Short By 32%
The upcoming first-quarter revenue of Nvidia is expected to fall by 32%. The rise of the crypto market no doubts increased demand which will see the sales of units in their numbers. The major cryptos that are responsible for the increased demand are Ethereum and Monero because GPU mining is still a key part of their operation.
Nvidia claimed that the performance of the fiscal year 2020 would be rated stagnant and even if it were going to be termed bad, it would be moderately bad. Things are tilting towards being unexpectedly worse. An analyst with Stifel had this to say:
“We are cautious on Nvidia shares in front of its earnings report. We believe the company will be challenged to meet its full-year guidance for revenue.”
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