Silicon Valley firms have a crypto hangover

Silicon Valley firms have a crypto hangover

Computer chip maker Nvidia said falling bitcoin prices have caused demand for its products to decline.

Shares of the tech giant fell about 18% on the Nasdaq after it reported third-quarter financial results that fell short of Wall Street expectations.

Nvidia reported $3.18 billion in revenue for the three months, up 21 percent ($2.64 billion) from the same period last year and up 2 percent ($3.12 billion) from the prior year. quarter.

However, the company's fourth-quarter 2018 guidance also fell below expectations, with revenue expected to be about $2.7 billion.

Nvidia makes hardware for gaming consoles and digital currency mining equipment, but the drop in the price of Bitcoin in 2018 has negatively impacted demand for the company's technology.

“The crypto hangover has been going on longer than we have. expected," Nvidia CEO Jensen Huang said on a conference call with investors.

Rival chipmaker AMD also reported lower profits last quarter, citing falling cryptocurrency prices.


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