Meteoric Bitcoin Rally Won’t Rescue Nvidia’s Flailing Stock
Nvidia stock is flailing, and shareholders shouldn’t count on the meteoric Bitcoin rally to rescue the chipmaker’s ailing revenue statistics. | Source: REUTERS / Mike Blake
By CCN: Nvidia previously blamed its negative earnings report on “crypto winter,” the vaunted extended bear market which Bitcoin appears to have finally exited. The incredible rally of the past couple weeks means many industries related to crypto will see increased demand and valuation – everything from mining to software development will be in fashion again.
However, NVDA shareholders should not count on another cryptocurrency boom to rescue the ailing chipmaker.
Analysts Worry about Nvidia as Stock Implodes
Nvidia stock continues to teeter on the brink, and the company’s first-quarter earnings report isn’t looking very healthy, according to Wall Street analysts, who note that the quarter saw little recovery in demand for the company’s products. The report is set to come out today. Many believe the company’s main weakness lies in its data center division.
Nvidia just ended its first quarter of the fiscal year 2020. Previously, as sales exploded and then declined, due in part to the cycles of crypto, CEO Jensen Huang cited increased data center business as evidence that the company had much more to offer than gaming chips. This confidence may be undermined today as the company is likely to report a decline in that division, as well.
Nvidia Revenues Down 32% & a Resurgent Crypto Market Won’t Help