Nvidia's shares have sunk significantly despite the company's growth of hundreds of millions of dollars. By selling their chips to cryptocurrency miners, the company has made good money in this market. However, its presence is beginning to decline sharply due to a decrease in demand for cryptocurrency mining and due to the very fall of Ethereum in May of this year.

Yesterday, Nvidia shares fell by 2.5% to $ 183.24 but then regained their positions. Over the past year, the shares have grown by 74%. Thus, even the observed movement down by 20% does not yet threaten an upward rally. Strong demand for the company's shares appeared immediately after cryptocurrency miners concluded that NVIDIA graphics chips based on Ampere are good for Ethereum mining. The chips were so popular among miners that at some point, there was a shortage of cards for ordinary computer game lovers. The company immediately developed its version of the technical software specifically for mining, which led to a sharp increase in sales and an explosion in the stock market.

According to CFO Colette Kress, in the first fiscal quarter of this year, which ended in April, Nvidia sold its crypto chips for $ 155 million. Management expects that the revenue from the cryptocurrency in the second quarter will be $ 400 million. It is worth noting that these indicators do not take into account sales from video cards for ordinary gamers since miners continue to buy them for their purposes. It is expected that the total revenue from the sale of mining equipment in the 2nd quarter will be approximately $ 650 million.

The fall in the company's shares occurred after bitcoin, and other altcoins collapsed. It scared investors who were betting that high cryptocurrency prices would continue to stimulate sales of Nvidia chips. Last year's surge in interest in the Ampere chip line is not the first time that Nvidia has had a significant impact on the unstable cryptocurrency market. Back in 2018, its GPUs were also popular with miners.

Judging by what is happening now, history is repeating itself. The sharp drop in bitcoin and other cryptocurrencies prompted miners to start getting rid of their equipment, putting up for sale many cheap used Nvidia video cards. Against this background, Nvidia's sales have already fallen sharply. However, the company has already faced such problems and does not see anything terrible in this.

The correction to the level of 180 is not yet panic. It is a reasonably large level, from which investors, after a sharp drop in the stock market at the beginning of this week, will certainly show interest in this company. Their equipment demand will immediately return, as it fell, but subject to the growth of Ethereum, which is mined on NVIDIA cards. If we talk about a breakdown of the $ 180 per share level, then the pressure will surely increase, quickly bringing the price down to the next support of $ 171.