At the end of last week, there was a significant drop in the rates of cryptocurrencies, which in turn led to a decrease in the value of shares of manufacturers of graphic accelerators, on which a significant share of crypto operations is carried out. So, last Friday, the fall of Nvidia stock was 30% (the stock has fallen since 202,7 to 163,4 USD).
The last year and a half thanks to the miners, actively buying video cards, the demand for Nvidia products kept at a consistently high level, and the company’s capitalization grew. Now there is an alignment of the market and the cost of shares and sales of video cards are reduced. However, the head of Nvidia Jensen Huang said that by the end of the year the demand for graphics cards will grow up again.
It is also worth mentioning the decline in AMD shares for the same reasons from $ 21.4 to 19.9.