Jen-Hsun Huang blames AMD for the loss of revenue in the last quarter for flooding the market with graphics cards for cryptocurrency mining.
The latest accounting shows that NVIDIA has lost a total of $ 700 million in revenue. It is not that they have been lost, the problem is that the company has suffered a drop in income that was initially exposed that it could be due to the loss of interest in cryptocurrency mining. The company and more specifically Jen-Hsun Huang, CEO of NVIDIA, seems to have other interpretations in this regard. Huang points out that there was "more than 12 weeks of inventory between us and the other brand" clearly referring to its competitor AMD.
NVIDIA says AMD is to blame for the company's falling revenue.
During an interview for the GamesBeat medium, Huang has been asked about cryptocurrency mining, where he has highlighted that they only represented 10% of quarterly income. He also commented that the distribution channel also included AMD's inventory.
These statements by Huang do not make the slightest sense, since if you look at the data, the GTX 1080 is the best-selling graphics on the market, while the RX 580 is in position 24. The RX 580 is between the GTX 1060 and the GTX 1070, which is not a problem for NVIDIA's mid-range, which is very strong. It has highlighted that the distribution of GTX 1080 with respect to the RX 580 was 90% for NVIDIA and 10% for AMD.
Subsequently, it has indicated that the thousands of RX 580s introduced into the channel began to create a 50% -50% frame, which represents an amount of inventory that is difficult to dispose of. This sudden increase in distribution channels seems to have its origin in the “cryptocurrency bubble” and suggests a unique situation that does not affect long-term growth options.
As the expected sales were not reached, the growth of the other areas, despite being positive, has not managed to offset the impact of cryptocurrencies in a single quarter. According to analysts, the company will need three to four quarters to fill the gap left by mining and return to normal growth.
We do not quite understand what the heck AMD looks like in this, since it is affected in the same way by cryptocurrency mining or even more than NVIDIA, since Radeon graphics have not been so good for mining for quite some time, mainly due to the energy consumption and how unstable they are with the overclocking that is done for mining.
Source: HOCP
