Major global chip maker Nvidia expects to complete sales of remaining inventory built up in expectation of crypto mining demand, according to a Bloomberg report on March 19.
The company is now working on selling the crypto-oriented inventory that remained unsold as the crypto bear market continues. The firm predicted that it would be able to sell the excess inventory by the end of the current quarter.
After Nvidia saw massive market growth amidst increased demand for crypto mining hardware from 2016 to 2018, the firm was hit hard by the extended crypto bear market, with its stock becoming the worst performer in the S&P 500 at the end of 2018.
Now, the California-headquartered computer hardware manufacturer said that it is still working through the stockpile of unsold inventory and remains confident that the company will be able to complete that effort, according to the firm’s Chief Financial Officer Colette Kress. Nvidia now also predicts that its revenue will be flat or slightly down from 2018 for fiscal year 2020.
The excess inventory, which was revealed following the release of Nvidia’s Q3 report last year, was characterized by CEO Jensen Huang as a “crypto hangover.” According to CNBC, Nvidia’s data segment failed to meet Wall Street expectations in 2018, even though its revenue grew by 58 percent.
According to Bloomberg, Huang is now trying to convince Wall Street that the company’s revenue will quickly improve upon a three-year surge once built-up inventory is bought up.
Major firms in the crypto mining industry were hit hard by the bear market. Chinese application specific integrated circuit (ASIC) producer, Bitmain, had to shut down some offices and lay off staff. The firm closed offices in both Israel and Amsterdam as part of an effort to reduce costs.
On March 5, Cointelegraph reported that revenues from mining major cryptocurrency Bitcoin (BTC) started climbing after falling to their lowest levels in 18 months.