Nvidia bullish about crypto-market; anticipates sale of stockpiled GPU mining chips

AMBCrypto
- Mar 20th 7:30 am

Nvidia, the graphics processing unit [GPU] manufacturer, and popularly used by Bitcoin [BTC] miners, is expecting the crypto-winter to thaw, and the crypto-spring to take its place.

According to a report by Bloomberg, the Taiwan-based company is confident that the stockpiled inventory accumulated through the previous year will be sold off, come the expected bull run in the cryptocurrency market.

Colette Kress, the company’s Chief Financial Officer, spoke to analysts and investors on 19 March, stating that the company expected to off-load all the unsold equipment soon. Despite this prediction however, the GPU-maker stuck to a flat revenue projection for the fiscal year 2020, when compared to the 4 percent decline predicted by market analysts.

The report further stated that Nvidia’s Chief Executive Officer, Jensen Huang, was out to convince Wall Street that the company will soon find consumers for their stockpiled equipment.

During the peak of the crypto-winter of December 2018, when the coin market plunged to a global valuation of under $101 billion, Nvidia recorded its worst performance in the S&P 500.

In late-December 2018, the final quarter valuation of the company’s share price recorded a massive 54 percent decline. On December 21 alone, the share price fell by 4.1 percent to $129.57, and it dipped further to $127.90, in early January. With the crypto-market’s mild resurgence in late-January and February, the share price climbed above $150.

Back in December, Huang was reported saying,

“Near-term results reflect excess channel inventory post the cryptocurrency boom, which will be corrected.”

He later described the virtual currency market collapse as a “crypto-hangover,” which, in his opinion, was the result of “excess inventory – excess channel inventory.” In 2018 alone, the collective market cap dropped by 80 percent, resulting in miners demanding inexpensive GPU cards as coin prices fell continuously.

Nvidia’s bullish prediction was in line with SEC’s senior advisor on digital assets and innovation, Valarie Szczepanik, who stated last week that “crypto-spring” was imminent. This affirmation by a senior official of the United States’ top financial regulatory body, led to the coin market adding $6 billion overnight, and saw Bitcoin [BTC] shooting past the $4,000 mark.

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