NVIDIA is one of the leading manufacturers of graphics processing units (GPUs), which it claims to have invented in 1999. NVIDIA (NVDA) is a publicly-traded U.S. corporation with a market capitalization of slgihtly more than $87.5 billion at the end of January 2019. NVIDIA designs and manufactures GPUs for general use as well as for gaming and artificial intelligence applications.
A GPU is a programmable chip originally designed for use in gaming devices which rely on graphic displays for their impact. GPUs process vectors of data efficiently, making them useful in applications without visual graphics, like cryptocurrency mining. The deployment of GPUs dominated the bitcoin mining equipment industry until about 2017. Their use has been supplanted in a number of applications, Especially bitcoin mining, by application-specific integrated circuits (ASICs), which are dedicated to solving a single problem.
In its Q I 2018 financial report NVIDIA revealed its chip sales for cryptocurrency mining applications for the first time, saying that its revenues reached $289 million for the quarter. The company also predicted a decline of two-thirds for the next quarter.
In its Q III 2018 financial report, NVIDIA said that its would take one or two more quarters for it to work through the inventory overhang that resulted from the fall in demand for both bitcoin and ether mining equipment.