Following a massive decline in profits in the second quarter of 2018, and the persistent bearish mood of the crypto market where Bitcoin has slipped below $8,000 has taken a toll on the stock price of Nvidia.
Nvidia CEO Colette Kress has said that the revenues from its cryptocurrency venture have declined to a point in which the chip manufacturing conglomerate will now have to back out from the crypto sector.
Expectations were far higher for many of those who invested in Nvidia, especially when considering that the company renowned for making high-powered graphics cards had made a major play into the worlds of cryptocurrency and mining.
In a press release, Nvidia CEO Jensen Huang said that, as of today, the executives believe cryptocurrency won’t be significant to the company for the second half of this fiscal year.
“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 expected loss of that crypto revenue, which also had the effect of contributing to slightly lower than expected revenue guidance for Q3 took the shine off Nvidia.