Nvidia Misses Q3 Revenue Target as Cryptocurrency Slump Weighs on Business


Shares of Nvidia plunged as much as 17 percent in after-hours trading on the Nasdaq Stock Market on Thursday, after the U.S. bitcoin mining equipment maker reported unexpectedly weak revenue for the third quarter. In premarket trading at the time of writing on Friday, Nvidia was down 16.01 percent at $169.99. Also Read: Canaan Hong Kong Listing Plans in Limbo ‘Crypto Hangover’ Drags Down Demand Revenue climbed 21 percent to $3.18 billion for the three months to Oct. 28, according to an earnings report released by Nvidia on Thursday. But the company underperformed the predictions of analysts, who were looking for revenue of between $3.19 billion and $3.32 billion. Net profit rose to $1.23 billion, up 12 percent from $1.1 billion in the preceding quarter. Nvidia, which specializes in making hardware for video game consoles and the cryptocurrency mining sector, will pay a dividend of $0.16 per share, about 7 percent above its second-quarter dividend. However, the slump in bitcoin prices this year has hit demand for Nvidia’s mining equipment hard. The company, valued at $123.1 billion, said it has accumulated a significant number of unsold cryptocurrency mining rigs — previously one of its key growth markets. “The crypto hangover lasted longer than we expected,” Jensen Huang, chief executive officer and founder of Nvidia, said on a conference call with investors on Nov. 15. In the earnings release, he had stated that “near-term results reflect excess channel inventory post the cryptocurrency boom, which will be corrected.” Huang added it will take another two…
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