Nvidia, which is the world’s largest graphics card (GPU) and chip maker, has recently decided to quit all of its efforts for the crypto market – and shut down the crypto venture.
The CFO of Nvidia, Colette Kress, commented the company’s decision in an official statement:
“We believe we’ve reached a normal period as we’re looking forward to essentially no cryptocurrency as we move forward. Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million, and we now expect a negligible contribution going forward.”
The CEO of Nvidia, Jensen Huang, also added that the profitability of the crypto venture has declined substantially, mainly because of the low demand for crypto-focused mining chips and mostly because of the bearish market.
If we take the news that Bitmain (which is the biggest conglomerate in the crypto sector) recorded a profit of $1.1 billion in the first quarter of 2018 alone – this is 65 times greater profit than the one by Nvidia’s cryptocurrency venture.
Speaking of, Nvidia generated a profit of $550 in the first three months of 2018, while Bitmain made a profit of $1.1 billion. Therefore, some can and some cannot understand Nvidia’s decision to exit crypto and move away from the position of the largest chip maker in the world.
However, analysts think that Nvidia is mainly quitting its crypto venture because of the low demand for GPUs – and not the downward trend for cryptocurrencies. In times when the prices of major cryptocurrencies are down by 70%, selling GPUs and chips can still be a profitable venture – but not with a low demand and low interest for activities like these.
The good news for the market, however, is the fact that the cryptocurrency prices are stabilizing over the past few weeks and with that, the interest in crypto mining may rise in the coming months.
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