Nvidia Stock Falls 5% as Demand for Crypto-Related Chips Dries Up
Credit:
nvidia-titan
Nvidia shares fell as much as 5.6% in after-hours trading Thursday after the company warned that demand for its cryptocurrency-related chips is drying up.
Nvidia has been one of the hottest technology stocks in recent years because of surging demand for its high-powered graphics chips, which are used in data centers and to power crypto mining operations. Since the beginning of 2016, Nvidia shares have risen 769%, compared with a 48% rise in the S&P 500 Index.
While Nvidia reported second-quarter revenue growth of 40% to $3.1 billion and GAAP net income of $1.76 a share—both above Wall Street’s expectations—the company forecast revenue between $3.19 billion and $3.32 billion, below the consensus estimate of $3.34 billion.
