Ever since last year’s peak in cryptocurrencies like bitcoin BTCUSD, +1.13% , more and more miners have sold off their mining rigs, meaning there has been a flood of second-hand Pascal gaming chips and gaming chips from companies like Advanced Micro Devices Inc. AMD, -3.07% on the market. On the call, Nvidia founder and CEO Jensen Huang said it was not alone in the inventory clearance problem.
“Gaming revenue was short of our expectations, and our fourth-quarter outlook is impacted by excess channel inventory of midrange Pascal products,” Nvidia Chief Financial Officer Colette Kress said in a statement. “We believe this is a near-term issue that will be corrected in one to two quarters, and remain confident in our competitive position and market opportunities.”
Nvidia Corp. shares plunged in the extended session Thursday after the chipmaker’s earnings and outlook fell short of Wall Street estimates and a cratering in cryptocurrency sales helped build up an excess inventory of older gaming chips.
Nvidia NVDA, -16.66% shares plunged 18% after hours, following a 2.6% rise to close the regular session at $202.39. Nvidia shares had already declined 21.9% in the past three months, as the PHLX Semiconductor Index SOX, -1.46% has declined 7.4% and the S&P 500 index SPX, +0.10% dropped 4.1%. The shares were down 17.3% in premarket trade Friday.
Still, the fact is that starting just around World War I, carbon black took over from zinc oxide, and tires became black. But more importantly, they became more durable, and still keep that color to this day.
Michael Martin is a trader and instructor for MartinKronicle. He is the publisher of Managing Expectations by Tony Saliba. Martin's own book is called The Inner Voice of Trading and features interviews with Michael Marcus, Peter Borish, Bill Dunn, and Ed Seykota - who also wrote the Foreword.
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