An American technology company Nvidia has officially stopped conducting crypto business.
Nvidia is the world’s largest graphic card and chip maker incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market. Its primary GPU product line, labeled “GeForce”, is in direct competition with Advanced Micro Devices’ (AMD) “Radeon” products.
Nvidia expanded its presence in the gaming industry with its handheld Shield Portable, Shield Tablet and Shield Android TV. In addition to GPU manufacturing, Nvidia provides parallel processing capabilities to researchers and scientists that allow them to efficiently run high-performance applications. They are deployed in supercomputing sites around the world.
In 2017, Nvidia enjoyed a significant growth propelled by the demand for its high-end GPUs, that are used for cryptocurrency mining. In March of this year, Nvidia teamed up with Arm to bring deep learning technology to IoT devices, which contributed to the company’s popularity. However, in May, Nvidia’s crypto boom started coming to an end, as the demand for GPU mining declined.
There is only a handful of tokens and cryptocurrencies which miners can produce with GPU miners, because of the lack of computing power in the chips used to create graphic cards. Moreover, the current situation on the crypto market is not optimistic. Bitcoin has slipped below the psychological price point of $8,000, its current price is $6,682, according to CoinMarketCap. Because of declining mining profits, Nvidia’s stock price, which was at a 52-week high on June 14, has now fallen to $244.
The company was anticipating sales of about $100 million for its cryptocurrency mining products in the second quarter of 2018, but the actual figures turned out to be around $18 million, which left it with a large amount of unsold stock.
Nvidia CFO Colette Kress said:
“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.”
Jensen Huang, Nvidia CEO, added that the profitability of its cryptocurrency-focused mining chips has declined substantially, as the price of cryptocurrencies moved to a downward trend.
Two days ago, the company announced launch of Geforce 20 series chips with new Turing chip architecture, which will be much more efficient than its GTX 1080 Ti and base GTX 1080 cards.
Jensen Huang introduced the @NVIDIAGeForce RTX series of gaming processors, representing the biggest leap in performance in our company's history. Get the announcement highlights: https://t.co/VXs9XsHPrP #Gamescom2018 #GraphicsReinvented pic.twitter.com/QSIOKbAe70
— NVIDIA (@nvidia) August 20, 2018
Now Nvidia is focusing on developing its strengths in computer gaming, artificial intelligence, and data processing sectors.