‘Crypto hangover’ hammers Nvidia’s outlook, shares drop 17 percent
Chip designer Nvidia Corp on Thursday forecast disappointing sales for the holiday quarter, pinning the blame on unsold chips piling up with distributors and retailers after the evaporation of the cryptocurrency mining boom. The Santa Clara, California-based company also posted sales that missed expectations for its third quarter. Shares plunged nearly 17 percent in late trading to $168.32.
For decades, Nvidia has supplied gaming cards to boost computer graphics, but in recent years cryptocurrency miners adopted the company’s cards to turn bits into wealth.