Nvidia has been telling investors not to count on revenue from selling cryptocurrency hardware for more than a year, but when the company reported earnings today (Nov. 15) Wall Street found out just how much of the company’s growth relied on digital money.
The company projected nearly $1 billion less revenue for the upcoming quarter than analysts expected, mainly as a result of it expecting cryptocurrency revenue drying up and too much unsold inventory of older products. Nvidia’s stock dropped more than 15% in after-hours trading to roughly $170.
“Our near-term results reflect excess channel inventory post the crypto-currency boom, which will be corrected,” CEO Jensen Huang said in the company’s press release.
After Nvidia similarly noted last quarter that its cryptocurrency revenue was declining, the stock took more than a 5% dive.
“We are including no contribution from crypto in our outlook,” Kress told investors at the time, but it appears investors weren’t ready to hear it.