Global manufacturer of graphics processors Nvidia Corp. stated that the stocks of the chips created in anticipation of demand from cryptocurrency miners, will be liquidated in the current quarter.
CFO Colette Kress (Colette Kress) reported that analysts and investors at an event in San Jose (CA). Chip maker adheres to the forecast for fiscal 2020 that income will remain stable or decline slightly compared to last year. According to the median estimate of analysts he will fall 4%.
On the background of the cryptocurrency boom, which began in 2017, the demand for GPUs for mining of cryptocurrencies has grown significantly. In March last year, the General Director Nvidia Jensun Huang (Jen-Hsun Huang) said about the need to increase production for GPU miners. In may, the company stated that miners continue to bring good returns.
But in the financial report for the second quarter in August, the company reported significant decline in sales of products related to mining. According to the results of III quarter head of Nvidia recognized that the company failed to overcome the consequences of “cryptocurrency madness.” Warehouses Nvidia accumulated unsold products for $124 million, of which $70 million was added for the third quarter of the year.
Error in the prospects of the cryptocurrency market were the reason for the submission by investors group claim to the company.
We will remind that earlier mining-pool F2Pool counted in the mining industry 8 million active cards.