November 16, Nvidia, the largest graphic card and chip manufacturer in the world has launched its financial report for Q3. Surprisingly, its Q3 revenue is only $3.18 billion, failed to achieve the $3.24 billion market expectation.

As thus, many investment banks have lowered their price target on Nvidia’s stock. Nvidia’s share price plummeted 18% within one day and its market cap has dropped by more than $23 billion. Soon after, some analysts jump out and commented that the overnight stock dropping was caused by the crypto market crash which leads to an overall drop in demand.

Jensen Huang, CEO of Nvidia also believes the company’s predicament is largely correlated with the crypto bear market.

“The crypto hangover lasted longer than we expected and we were surprised by that, but it will pass,” said Huang in an interview with MarketWatch.

Nevertheless, according to CCN, the bear market has little impact on Nvidia’s revenue decline. Since ASIC miners come into being, the mining efficiency has been continuously improved, and the market of GPU mining chips has been cut down. The total demand for GPU chips has also been reduced.

Meanwhile, cryptocurrency mining has gradually changed from individual mining to mining farms, which accelerates the decline of GPU sales.

In addition, Nvidia has firmly emphasized that GPU sales to crypto miners have substantially declined in its Q2 earnings call held in August. Colette Kress, CFO of Nvidia claimed that the firm is no longer expecting any contribution from its crypto-related venture.

It shows that Nvidia’s cypro-related business is heading to the end. It was also reported that due to a backlog of existing graphic cards, Nvidia’s next-generation GeForce RTX 2060 mid-range GPUs may be delayed.

CNBC Mad Money’s Jim Cramer indicated that the firm’s market cap drop is largely due to its misjudgment in revenue forecasting.

Moreover, Goldman Sachs analyst Toshiya Hari added that Nvidia’s stock plunged mainly due to its mid-range gaming GPU inventory and a correction in-game console SoCs.

According to Tencent Technology, as the rapid growth of artificial intelligence (AI), Nvidia’s rival Intel and AMD are also investing in GPUs which has a certain impact in Nvidia’s business. Nvidia’s performance in its GPU business performance reflects the market saturation.