Massive bitcoin rally won’t be the hero who saves the negative earnings of Nvidia. The company blamed the harsh crypto winter for its failing stock but let’s see if that really is the case in today’s coming altcoin news.
The massive bitcoin rally in the past couple of weeks signs there is a lot of industries that are getting into crypto and increasing the demand and valuation of the number one cryptocurrency. However, Nvidia seems to be blaming the prolonged bear market for the low level of earnings. The shareholders are also not counting on another cryptocurrency to rescue their investments.
The Nvidia stock still continues to crash and the Q1 earnings report show that the company is not looking in its top shape. Wall Street analysts note that the first quarter is showing almost no signs of recovery in demand for the products of the company. Many believe that the main weakness in the company lies in the data center division.
Nvidia just finished the first quarter of the fiscal year 2020. When the sales exploded previously and later declined, the CEO Jensen Huang noted that the increased data center business is the perfect evidence that the company has much more to offer. However, now it doesn’t look much like it.
The Q1 revenue is expected to be down by almost 33 percent since 2018. The increased demand for cryptocurrencies mainly started from altcoins such as Monero and Ethereum where GPU mining is still dominant. Nvidia previously stated that the performance of the company next year will be either stagnant or will get worse.
As reported in the best cryptocurrency news sites, the ups and downs in cryptocurrency are more extreme than other industries so it is tough for traditional companies to endure. The final blows for the companies came at the end of the massive bitcoin rally in 2017 when the price crashed and took down all other major cryptocurrencies with it. The Nvidia stock got in a bad position since and is now waiting for the next shot to rise.
Nvidia is likely waiting for the resurgence fuelled by Ethereum but unfortunately, ETH will be moving to a proof-of-stake model so the demand for mining equipment will decline dramatically.
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