Secondhand Mining GPU Accelerating Nvidia Share Dump
The world’s largest graphics card and chip manufacturer Nvidia launched its Q4 financial report on Feb. 15. Unfortunately, as its CEO Jensen Huang concluded, Q4 2018 was “an extraordinary, unusually turbulent, and disappointing quarter.
For the fourth quarter of 2018, the company reported revenue of $ 2.205 billion, declined by 24 percent on a year-on-year basis.
Artificial intelligence (AI) analyst Wang Shuyi commented that the crypto crash leads to an overall drop in demand in the mining market, which has a bad effect on Nvidia’s financial performance.
He also added that the bear market started from Q3 2018 lower the industrial expectations of 2019, and the conservative expectations pinned down Nvidia’s order.
In addition, according to the China Business Journal, there have been a large number of second-hand graphics cards flooding the market since the second half of last year. These chips are mainly sold to gamers and computer assembly enthusiasts.
However, it is worth noting that massive secondhand graphics cards that used for crypto mining before also entered the market and disguised as ordinary used graphics cards for sale. These cheap “mining cards” affects the sales of new graphics cards.
An anonymous digital product sales told China Business Journal that he put an order on China’s secondhand e-commerce market, purchasing secondhand mining cards at a price of 111 yuan ($16.39 USD).
As these mining cards are used in 24-hours-run mining devices, their performance state s have been questioned. Many buyers have also indicated that they don’t want mining cards when they purchasing secondhand graphics cards.
It was also reported that in China’s secondhand market, over 90% of Nvidia’s GeForce 10 Series (including GTX 1050, 1060, 1070) are mining cards. Forbes also indicated that “a flood of second-hand graphics cards hitting auction sites with a knock-on effect on sales of new cards”.
In the heady days of 2017, a GTX 1070 cost nearly $1000 USD, however, as the crypto market turned bearish in the second half of 2018, Nvidia stock price has bottomed. The company has claimed that the cryptocurrency decline had resulted in a glut of excess inventory of GPUs based on its Pascal architecture in the sales channel, which drags sales of its new products down.