NVIDIA CFO Said the Company Had Limited Visibility into Cryptomining’s Impact on GPU Demand

[Peter_Brosdahl]

The NVIDIA CFO has said that the company had limited visibility of the impact of cryptomining on GPU demand during its latest earning call. The statement comes as much of...

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[Riccochet]

Do they think people are retarded? As if we don't remember them shipping 10's of thousands of die packages directly to chinese mining farms? The shipping containers full of cards headed directly to mining farms?

That company is a joke.

 

[Grimlakin]

I literally laughed at this.. Nvidia should be SHARPLY fined for that idiotic statement. And if I were a voting board member I would be IMMEDIATELY pushing to have that CFO fired parachute or not and someone FAR more competent put in their place.

That is LITERALLY an ostrich maneuver on part of that CFO. *Jams head up *** of CEO* "No there is NO WAY we could have predicted this... btw we are gonna get fined again."

 

[Brian_B]

Anything to shore up the share price.

 

[Peter_Brosdahl]

I literally started this piece when I had heard some brief news about Jensen hinting that the 40-series would be launching soon during the call and it was going to be a kind of fluff, here we are and what's coming kind of thing, but when I read deeper into the pr pieces they posted my jaw dropped.

 

[Grimlakin]

Just be freaking honest.

"Like before when cryptocurrency values spike and the capability to mine these currencies runs well on our product to where it is profitable to do so. Businesses buy our product in bulk as long as the ROI makes sense to them. We leveraged this demand by increasing prices as much as we thought the demand could bare and moving through as much product as possible to attempt to satisfy this longer than expected spike in demand. In addition consumer demand was at an sustained high with many having increased capital to spend on our product. The entire market took action to gain maximum profit during this time. Now that spike is receding and in an effort to recoup costs those that bought our cards en mass for mining are now selling to the consumer market. We have a new product on the horizon. And have ramped down our production due to reduced demand but still have excess new inventory in the market competing with the used market. We expect shrinkage year over year growth with a likely contraction.

While we are excited for our next product stack we are aware that the demand spike does not exist at this time so expect sell through to the Market to be lower as well as negative sentiment of our individual consumer base to further slow sales.

To combat this in the future we are instituting a bulk lease program for those that need more than 10 of our cards at once. This will allow us to meet the demand during a mining spike, spread out of pocket costs over a longer period of time for our bulk users. As well as have a lever to more properly control the secondary market to better predict and drive sale through of our individual consumer base that we value.

 

[Elf_Boy]

I bet the entire NV corporate site is completely illuminated by gas lighting.

 

[Peter_Brosdahl]

The actual quote seemed unspectacular and pretty standard.

Yeah, but it was like a legal two-step. Maybe we knew mining was responsible for our sales, maybe we didn't. Maybe it'll happen again, maybe it won't. I'm guessing someone in the company is hoping for something to replace ETH and trigger another buyout swath for the next gen but just in case they want to assure investors they got them covered.

The part about them saying they expected cryptocurrency to make a diminishing contribution to gaming demand is a slap in the face for gamers. Pretty sure none of the gaming market saw it as a positive contribution and it seems peculiar to even connect the two outside of NFT references. I guess all those giant mining farms were really LAN parties in disguise.