Nvidia Hopes to Increase Profits after Selling Crypto Mining Inventory
Hope might be on the horizon for Nvidia, as the chip maker is on track to sell off all their built up inventory by the first quarter of 2019 according to a March 19, 2019 report.
Clearing Stock and High Hopes
Still, some firms have been able to weather the storm so far and keep their doors open. Nvidia is due to completely clear out their inventory of mining chips by the end of the first quarter of 2019 to stay afloat, according to a March 19, 2019 report.
The chips in question had been accumulated in anticipation of high demand for crypto mining parts which was the case in previous years but took a hit one the crypto winter struck.
During a March 19, 2019 company event in California, Nvidia CFO Colette Kress told the press that the company is working towards clearing the inventory they had built up and are on track to complete this task soon.
For now, the company is pecking that revenue for the fiscal year of 2020 will be slightly down from previous years, which is consistent with most analysts’ belief that the company will indeed see a four percent drop.
The company’s CEO Jensen Huang has also publicly stated that the company will be able to recover from the slump and regain its momentum once their current inventory has been sold off and begins use by customers. Perhaps with time, and the recovery of the crypto market in general, Nvidia and other mining-related companies can indeed make a full recovery.
Staying above Water
Perhaps nothing is more closely watched in the crypto community than the current prices of the principal coins such as bitcoin.
This is because virtually every aspect of the industry is dependent on the price staying at a healthy level and this became even more evident in late 2018 when the bear market wiped out companies within weeks of its occurrence.
Fortunately, companies like Nvidia have been able to stay on track and with more institutional investments coming into the picture, it seems the industry plans to keep resilient and thriving, crypto winter or not.