Nvidia Stock Falls Amidst Fears Of A Cryptocurrency Mining Bust

[PaulAlcorn]

Nvidia's stock falls on fears of reduced sales to cryptocurrency miners.

Nvidia Stock Falls Amidst Fears Of A Cryptocurrency Mining Bust : Read more

 

[bloodroses]

"the company's stock tumbled 7.85% after it revealed that $287 million of its revenue was generated from direct sales to cryptocurrency miners."

And in other news, water wet.

How the heck did the stock holders not know this beforehand until Nvidia 'revealed' it?

 

[gggplaya]

I don't know why they're citing fortnite as growth since you can play it on consoles, which gives less incentive to pc game.

 

[dudmont]

The comments about GPP were hilarious. How dumb do they think consumers are? His remarks indicate we(the consumer/customer) are too stupid to figure out what chip is in what card. Or the other side of the coin, we're too stupid to figure out what his lame remarks mean in regards to our stupidity(figure that one out, I dare you!). I just wish AMD had something that could genuinely compete with the 1080TI right now and had something in the wings to compete with the next flagship. Best way to confirm to NVidia that I'm stupid, is to buy the competitor's product.

 

[stdragon]

How the heck did the stock holders not know this beforehand until Nvidia 'revealed' it?

HFT algorithms (and day traders) by definition don't care about long-term trends. They only focus on profit via the delta of buying low and selling high. So it's not like those that control the market don't know this. They know it. It's simply not in their interest to care. Now, for people like you and me that engage in the market at the human level, yeah, long-term matters.

Actually, if I recall, nVidia knows that this is a trap. It's why they didn't want to get involved in the crypto currency trend. On one hand, it's a major boost for the company. On the other, the whiplash from a correction later really takes the wind out from their sails.

I guess you could say that companies that engage in Cryptocurrency is a lot like doing coke. There's a major high at first, but the crash later leads to a long and lasting depression

 

[redgarl]

Stock is back to a overvalued 260$. Just throw AI somewhere in a conference call and investors are taking words for actual value. So far, Nvidia is just selling GPUs... fact. All other voodoo attempt is just to try to sell more GPUs in different format.

 

[KidHorn]

Cryptocurrency was bound to bust sooner or later. I guess now is as good a time as any.

If it brings video card and maybe memory prices down to earth, it will be a good thing.

 

[AlistairAB]

Stock is back to a overvalued 260$. Just throw AI somewhere in a conference call and investors are taking words for actual value. So far, Nvidia is just selling GPUs... fact. All other voodoo attempt is just to try to sell more GPUs in different format.

Yeah, day to day prices in stocks don't mean much, be careful of explanations in general. The stock is already up 20 percent over the last 2 weeks, and the market was up every day for a week also, so this is more a response to that.

 

[kyotokid]

...we can only hope. Although suddenly, the Nvidia store has all models of GTX 10xx cards available again after over two months of them being "not in stock".

Sorry Nvidia, you lost a sale from me by making it seem that there would no longer be any more 10xx cards (I ended up buying a used Titan X for around the price of the Founders Ed. 1070).

 

[genz]

How the heck did the stock holders not know this beforehand until Nvidia 'revealed' it?

HFT algorithms (and day traders) by definition don't care about long-term trends. They only focus on profit via the delta of buying low and selling high. So it's not like those that control the market don't know this. They know it. It's simply not in their interest to care. Now, for people like you and me that engage in the market at the human level, yeah, long-term matters.

Actually, if I recall, nVidia knows that this is a trap. It's why they didn't want to get involved in the crypto currency trend. On one hand, it's a major boost for the company. On the other, the whiplash from a correction later really takes the wind out from their sails.

I guess you could say that companies that engage in Cryptocurrency is a lot like doing coke. There's a major high at first, but the crash later leads to a long and lasting depression

The funny thing is that this is the first that Nvidia was hoping not to have. It wasn't so much a matter of if miners were buying cards, it was a game of hot potato on everyone declaring that there's no info on the subject so nobody could really make informed decisions (like pulling out stock) based on miners.

10% is a laugh btw, more like 50-60% of sales are miners, and then there's the resellers on eBay.

 

[popatim]

I wonder why Nvidia hasn't entered into the asic miners themselves...

 

[alextheblue]

"the company's stock tumbled 7.85% after it revealed that $287 million of its revenue was generated from direct sales to cryptocurrency miners."

And in other news, water wet.

How the heck did the stock holders not know this beforehand until Nvidia 'revealed' it?

They knew it. It was poorly worded, but you should have quoted the next sentence as well. Context. The stock didn't take a hit because people found out a big chunk of sales were direct to miners. It took a hit because they found out those sales were going to start drying up.

Think about it, if they had "revealed" that they sold that much product directly to miners, and that figure was expected to grow instead of shrink, do you think the shareholders would have responded the same?

 

[alextheblue]

I wonder why Nvidia hasn't entered into the asic miners themselves...

Big investment with an even larger risk. Not a wise investment for a firm that isn't already established in that market (and located somewhere with lower costs).

 

[mischon123]

Companies collecting data and turning them into magical rows of numbers that somehow end up as a slice of cheese in a powerpoint presentation making the case for collecting more data. The pointlessness of it is astonishing.

 

[edort4]

They wont tell all the truth, just part of it, so the bubble wont burst nor it will keep inflating out of control.

The revenues from minning are way more than those 286 millions. Easily the real amout is double.

Also at least 1/4 of the revenues from gaiming are directly related to minning. As demand rose and ATI was also sold out (of competing business) the prices went up thus increasing revenues.

But thats only because gamers are kidnaped by the current situation. This situation cant go on forever. Either gamers will get sick of it or if prices are kept unreally high (cough* collusion between NVD/ATI *cough) sooner or later a new actor will emerge to feed on their oligopoly.

 

[genz]

I wonder why Nvidia hasn't entered into the asic miners themselves...

Big investment with an even larger risk. Not a wise investment for a firm that isn't already established in that market (and located somewhere with lower costs).

And can use existing designs and hardware for the same purpose, saving manufacturing costs and not making a completely useless 1 off design that won't help anything else down the line.

Part of why ASICs aren't good is they have no resale value. If mining is no longer profitable with your card you sell it. If the same is true for an ASIC it's either a room heater or scrap metal.

Companies collecting data and turning them into magical rows of numbers that somehow end up as a slice of cheese in a powerpoint presentation making the case for collecting more data. The pointlessness of it is astonishing.

Erm. Are you talking about finance? That's basically the same thing, number crunching to skim off the top of a basically valueless currency, and issuing of debt to pay debt (see bearer bonds). Its a bank. Crypto just figured out how to make a more secure bank without the need for an admin team or job holders to scam the system.

 

[TJ Hooker]

They wont tell all the truth, just part of it, so the bubble wont burst nor it will keep inflating out of control.

The revenues from minning are way more than those 286 millions. Easily the real amout is double.

Also at least 1/4 of the revenues from gaiming are directly related to minning. As demand rose and ATI was also sold out (of competing business) the prices went up thus increasing revenues.

And you have a source for those claims I'm sure?

If Nvidia was knowingly lying about this kind of stuff, it'd open them up to lawsuits from their shareholders if that came out.

Also, AFAIK re-sellers were the ones profiting from increased profits from price hikes and gouging. Nvidia signs contracts to deliver large quantities of GPUs to their partners for a certain price. The profit Nvidia was making per GPU sold probably didn't change much even with the price for the end buyer increasing by ~100% in some cases.