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Comment by avar | Hacker News Reader

They got swept up in the crypto bubble, are at $150 now after a high of $300-ish, but were $20-30 in 2015 before all that. So with the "crypto depression" this is to be expected.

But the question I find more interesting is what this does to a company. Is it even plausible for them to go back to just running the company as though it were worth $20-30 and pretend it never happened?

Or are they going to have investors who bought in at 2-3x that price at best screaming for them to inflate their stock by whatever means necessary?

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I think the market gave too much weight to crypto with regard to Nvidia. The growth story for the company is still there.

The article is talking about other companies designing for their own custom needs, but I think the mindshare has largely already been captured by Nvidia. Why? Because their software stack, even with its quirks, is still better than a lot of what else is out there. In the current marketplace, deploying custom GPU solutions without Nvidia products is really painful and something only someone who enjoys pain would undertake.

> Is it even plausible for them to go back to just running the company as though it were worth $20-30 and pretend it never happened?

Your math is way off, they don't need to pretend nothing happened and go back to $30 / share. The crypto bubble (now imploded) isn't why they're still generating $4 billion in annual profit ($1 billion in operating income last quarter). It's not a critical part of their business; in actual numbers it was a modest party on the side for several quarters and some investors had hoped it would be more than that. The removal of the crypto boom from expectations, is causing a let-down in the projected upside in the stock and their business. Crypto wasn't 3/4 of their business, or the last quarter results would have shown that type of destruction.

Your $20-$30 share price would peg them at a $12 to $18 billion market cap. They could justify that with just the earnings from their latest quarter.

Nvidia made strategic decisions when the crypto craze was beginning not to play into it, anticipating that exactly what happened was going to happen. I doubt this recent jump and fall of the stock has had much of an effect internally.

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