Nvidia expects growth of the cryptocurrency market

The management of the largest manufacturer of video accelerators Nvidia expects the growth of the crypto-currency market, which will allow the company to get rid of the equipment accumulated in warehouses thanks to miners.

Financial Director of Nvidia Colette Kress (Colette Kress) in his speech to analysts and investors said that the company expects the sale of accumulated stocks of equipment. However, the company expects that in the 2020 fiscal year, the profit will remain either at the same level as in the previous reporting period, or slightly decrease. Analysts predict a decrease In NVIDIA's profits by 4%.

Note that after the fall of the crypto-currency market and the decline in sales of equipment to miners, Nvidia shares began to plummet. By the end of December, the company's share price decreased by 54% to $129.57, and in January it updated the minimum at $127.9. However, after some recovery of the cryptocurrency industry, Nvidia shares rose to $150.

"The results reflect the excess supply of equipment after the cryptocurrency boom, but the volume of supply will be adjusted," — said in December, the head of Nvidia Jensen Huang (Jensen Huang).

A recent study by Diar confirms that the profit from mining began to grow after it fell to the lowest level in 18 months. So the expectations of Nvidia management may well be realized in the foreseeable future.