Internationally renowned graphics chip and artificial intelligence company Nvidia (NASDAQ: NVDA) released the Q18 financial report for 2018 and it has not made pretty reading for the company.
Unfortunately, the company reported Nvidia’s revenue for the quarter was 2.205 billion US dollars, down 24% year-on-year. This means that the bear market has really hit the company and with the decline of miners, this has proved a catalyst for this fall in revenue. Not only that, with expectations for 2019 are very negative, and cautious expectations have affected orders, which has dragged Nvidia’s market performance down.
Another factor that is at play is the fact that as miners look to cut costs they will look for secondhand cards. According to local reports, since the second half of last year, there have been a large number of second-hand graphics cards on the market.
The reaction from the company has been assured and not filled with panic, Nvidia founder and CEO Huang Renxun said:
“Q4 is an unusual, unusually volatile and disappointing quarter. But looking ahead, we are confident in our company strategy and growth momentum”.
The main types of mining machines include graphics card mining machines and chip mining machines (ie ASIC mining machines). The mining machine used by the miners mainly depends on what kind of virtual currency the miner digs. Most miners use the chip mining machine to dig bitcoin and use the video card mining machine to dig the Ethereum
Overall, this is not good news for the company but it seems that this is the path for most companies in this current bear market. Maybe NVIDIA will return but it would appear that their artificial intelligence side will no doubt prove the driving force rather than their mining cards.