RATE Group | Following Crypto Mining Crash, GPU Producer Nvidia Worst Performer in S&P 500
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Following Crypto Mining Crash, GPU Producer Nvidia Worst Performer in S&P 500

23 Dec Following Crypto Mining Crash, GPU Producer Nvidia Worst Performer in S&P 500

Posted at 07:05h in Cryptocurrency News by

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The drastic decrease in crypto mining profitability has hit graphics processing unit (GPU) producers like Taiwan-based Nvidia hard. In Q4 2018, the firm experienced a massive sell-off of its shares, cutting the stock price by 54 percent and making it the worst performer in the S&P 500, CNBC reports on Dec. 21.

From 2016 to September 2018, Nvidia’s market value markedly increased from $14 billion to $175 billion as demand for its GPUs in artificial intelligence (AI) and cryptocurrency mining grew. In May, the firm reported its profits from crypto mining for the first time while forecasting a two-thirds drop in sales to miners for Q2.

Nvidia initially forecasted insignificant crypto mining-related sales in Q3, while the quarterly report in November revealed that GPU sales for blockchain-related applications had all but disappeared. Nvidia CEO Jensen Huang said that the company’s “near-term results reflect excess channel inventory post the cryptocurrency boom, which will be…

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