In brief: Nvidia has been complaining about the “crypto hangover” that left it with excess inventory, but having a massive number of unsold GTX 1060 cards isn’t its only concern. As the price of Bitcoin keeps on falling, the green team’s stock has plummeted to its lowest point for 16 months.
After holding steady around the $6000 mark for months, Bitcoin started to fall a couple of weeks ago. It’s currently sitting just above $4000, having reached a low of $3755—the lowest its been since September 2017 and a far cry from the near $20,000 peak it hit last December.
Part of Bitcoin’s decline has been blamed on Bitcoin Cash’s hard fork. Confidence in cryptocurrency has also been knocked by the Justice Department’s investigation into whether Bitcoin’s surge last year was the result of market manipulation—specifically, traders using Tether to drive up its price.
Nvidia admits it failed to predict the cryptomining market’s sharp decline. With mining barely profitable, demand for graphics cards such as the GTX 1060 has fallen drastically, leaving the firm with “excess channel inventory.”
As noted by PC Gamer, the news saw Nvidia’s share price fall 10 percent last week and is now at its lowest price since July 2017. While this won’t be welcome news for the company, less demand for GPUs from cryptominers does mean availability and the cost of graphics cards should remain stable. One other possible effect, however, may be that Nvidia won’t release its mid-range Turing cards, including the RTX 2060, until it clears its excess of GTX 1060s, which could take three to six months.
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