Bitcoin price plunge hits Silicon Valley tech firm
Computer chipmaker Nvidia has revealed that the fall in the price of Bitcoin has hit demand for its technology.
The tech giant’s stock fell approximately 18 per cent in after hours trading on the Nasdaq after it published its third-quarter financial results, which fell short of Wall Street’s expectations.
Nvidia reported revenue of $3.18 billion for the three months to 28 October 2018, an increase of 21 per cent from $2.64 billion a year earlier and up 2 per cent from $3.12 billion in the previous quarter.
The company’s outlook for the fourth quarter of 2018 also fell below expectations, with revenue expected to be around $2.7 billion, plus or minus 2 per cent.
Nvidia makes hardware for video game consoles and digital currency mining but the plunge in bitcoin prices in 2018 has hit demand for the company’s technology.
“The crypto hangover lasted longer than we expected,” said Nvidia CEO Jensen Huang on a conference call with investors.
Last quarter, rival chipmaker AMD also reported lower than expected earnings, blaming the cryptocurrency slump for a slowdown in sales.
Bitcoin is currently trading at approximately just over $5,565, down from highs of almost $20,000 at the end of 2017.