Over the past several years, graphics processing specialist NVIDIA (NASDAQ:NVDA) seemed invincible. A perfect storm of strong demand from gamers, a growing data center business, and a surging cryptocurrency market rocketed the stock to nearly 1,300% gains in less than four years.
Then, the unthinkable happened: Several of the trends that propelled the company to record heights began to unravel simultaneously. The cryptocurrency bubble burst, leaving a glut of graphics processing units (GPUs), which were used to perform the cryptocurrency mining, on the market. To make matters worse, the data center business began slowing, and gamers were slow to adopt NVIDIA’s latest processors. This caused NVIDIA to issue an
uncharacteristic guidance warning, which sent the stock plummeting.