Nvidia graphics chipmaker
Nvidia graphics chipmaker reports that the quarterly revenue is much better. It was expected on Thursday evening by Wall Street analyst. Although, dragging the stock price of Nvidia shares with 54% up this year. The number sent tumbling almost 8% in after-hours trading.
Thursday, Nvidia shares were down 6.6% at $153.87 in extends trading. It was its strongest performance across the benchmark S&P 500 index as the share was risen 181% in past year.
However, Wall Street thinks the cryptocurrency driven sales boom won’t last. If there is drop in price, buying of graphics cards could end up soon. Analysts raised the same concerns after AMD’s results last month.
Jensen Huang, Nvidia CEO tried to argue that the cryptocurrency was booming. Additionally, bitcoin new digital currencies have been mint. It also grew rapidly in approval and some startup is issuing their own digital tokens in lieu of tapping venture capital.
Chips Ride Cryptocurrency Boom
Predictions on the market for graphics cards in cryptocurrency that grow quietly large. Huang said the sales were “not likely to go away anytime soon. There will be more currencies to come from different”. And then he added, “We have the ability to rock and roll with this market as it goes”.
Overall, Nvidia reports revenue extend 56% to 2.2 billion. It was a quarterly record of more than $2 billion where Wall Street analyst had expected. It was a projection in the gaming industry for designing graphics processing chips. Moreover, it has been intensifying into newer technologies includes cloud computing, self- driving cars, and artificial intelligence.
Recently, Bitcoin made cryptocurrencies popular but newer technologies like Ethereum has provoked a trend of mining using high-end gaming graphics cards. Mining use computers to process cryptocurrency transactions and rewarded with additional cryptocurrency.
Hang said, “Cryptocurrency and blockchain are here to stay. The market need for it is going to grow. And over time, it will become quite large”.
The total Nvidia’s revenue rose 56% to $2.23 billion and reaching estimating of $1.96 billion.