Nvidia expects bull market for cryptocurrencies

Optimism at Nvidia: The graphics card manufacturer looks confidently into the crypto future and expects a long-term bull market. Currently Nvidia is still sitting on a whole bunch of unsold chipsets. However, the company expects demand - and hence sales - to recover soon.

At a corporate event in San Jose, California, Nvidia's CFO, Colette Kress, told analysts and investors on Tuesday, March 19, that the graphics card manufacturer anticipates rising sales this quarter. Therefore one is confident to sell all previously unsold graphic cards in the near future.

Nvidia: Increasing profits after selling mining equipment

Nvidia is a little more conservative in terms of expected sales. The company expects profits to grow evenly or even slightly in the worst case, by the fiscal year 2020. This prediction coincides with the opinion of most analysts. On average, they expect a slight loss of four percent.

Nvidia CTO Jensen Huang, however, assumes that the profits will increase again after the sale of the surplus mining chips. For the future, the Nvidia CEO expects strong growth rates, especially in the areas of eSports, virtual reality and data center management. Just recently, Nvidia had taken over the Israeli network equipment supplier Mellanox and snatched for around seven billion dollars of the competition from Intel under the nose.

Hangover with crypto miners continues - but there is a ray of hope

For now, these are just visions. Strictly speaking, Nvidia is still deep in the bear market. There is a reason that the chips are stacked in the warehouses. Demand for mining-capable graphics cards grew massively from 2016 to early 2018; only to fall then just as deep again.

From the loss Nvidia has not recovered until today. In the S & P 500 index of the 500 largest listed US companies, Nvidia's shares were among the biggest losers by the end of 2018. After the hangover in the crypto market, Nvidia is unlikely to reenter large-scale production of mining equipment, but will confine itself to getting rid of the excess inventory.

After all, Nvidia has recovered a bit on the stock market. After the massive losses of the past year, the price has risen again by around 27 percent since the beginning of 2019. And even for mining enthusiasts, there is a small bright spot. According to a report by Diar's data analysts, Bitcoin miners' earnings have rallied slightly since the beginning of March, having previously reached their lowest level in 18 months.