The entire cryptocurrency market has plunged to the bear’s attack since January 2018. The beginning of the month seemed all bright and shiny for the coin, however, the market decided to jump to the darker side mid-way. This not only had an adverse effect on the investors but also on several firms working in the blockchain and cryptocurrency space. Notably, the firms that were hit by the bearish market are the mining firms and the chip-makers.
According to the latest reports, one of the recently fallen firms is noted to be Nvidia Corp, a Bitcoin chip-maker giant. The company has lost around half of its value in the past four months alone. Although the plunge of Bitcoin and other cryptocurrencies is not stated to be one of the key reasons for the fall of Nvidia’s shares, it is noted to be a major contributing reason for the wariness of investors over the firm’s future.
In an interview with CNBC, Gina Sanchez said:
“”I think this [Nvidia] is up in line with the S&P but no more. I really don’t see this as an interesting buy at all here because you still have significant slowing in the cloud market [….]”
She further said:
“You are seeing this not only in Nvidia but across the chip makers. And also Nvidia was the darling of the crypto-craze, which has now fallen off. And so to expect that that’s not going to have an impact on Nvidia’s earning over time, I think this is a stock to stay away from right now”
To add on, Nvidia witnessed a dramatic drop in the market after it released guidance for Q4 of 2019. The company is now expecting revenue of $2.2 billion for Q4 fiscal 2019, slashing over $500 million from its previous forecast.
The firm clearly stated that the reason for the reduction in numbers is the drop of Bitcoin and other cryptocurrencies in the market, which resulted in less demand for chips from the miners. The firm stated that this drop was anticipated. However, on the contrary, China’s weakening economy caught the company off-guard as it is noted to be the second main reason for the slash in the revenues.