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Why Nvidia Stock Dropping Lower Isn't All About The Split — Look Toward Ethereum, Dogecoin

July 21, 2021 1:09 am
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Why Nvidia Stock Dropping Lower Isn't All About The Split — Look Toward Ethereum, Dogecoin

NVIDIA Corporation (NASDAQ:NVDA) shares turned red on Tuesday after losing the prior session’s buoyancy. 
What Happened: The fall in the shares comes on a day when the company stock split 4-for-1. However, there may be another factor at play leading to the company’s stock slipping.

The falling prices of cryptocurrencies such as Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE) are also likely impacting Nvidia. 

ETH and DOGE have plunged 17.09% and 33.64% respectively in the last 30 days with both registering 3.97% and 6.78% declines in the last week alone.

Apex cryptocurrency Bitcoin (CRYPTO: BTC) is down 14.36% over the last 30 days and 6.07% in the past week.

Nvidia shares closed 0.89% lower at $186.12 on Tuesday in the regular session and rose almost 0.3% in the after-hours trading.

See Also: How To Buy NVIDIA (NVDA) Stock

Why It Matters: As per the company’s first-quarter figures, $155 million or 2.74% of the total was generated thanks to the sales of dedicated Cryptocurrency Mining Processors or CMPs. 

Nvidia CFO Colette Kress gave guidance of $400 million of CMP revenue for the second quarter. The Q2 numbers are expected on August 18.

See Also: Nvidia Raked In $100-300M From Ethereum Miners In Q4 Amid GPU Supply Crunch

As per a Barron’s report, Kress’ figures did not include video game graphics chips that miners purchased, which according to BMO Capital Markets analyst Ambrish Srivastava would ratchet up NVIDIA’s Q1 cryptocurrency revenue to nearly $650 million.

In 2018, a slump in BTC and other cryptocurrency prices led to reportedly miners dumping their hardware, which caused a glut in the market and caused NVIDIA sales to slump.

Declines in revenue post the slump amounted to 31% for four straight quarters.

Read Next: Micron, Nvidia, AMD, TSMC, Or Intel? One Semiconductor Stock Emerged As Clear Winner In 2021 First-Half Gains

Photo: Courtesy of Nvidia

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