Nvidia, which makes high-end graphics chips for devices such as PC gaming systems and self-driving cars, said revenue declined about 31% compared to a year earlier. Its revenue has now fallen for two consecutive quarters.
The decline this quarter was the result of a drop in revenue from graphics processing units, which can also be used to mine cryptocurrencies like bitcoin. When crypto prices took a dramatic plunge, Nvidia was hit hard. Revenue from its data division also declined. Its automotive unit was a bright spot, with revenue up 14% from a year earlier, to $166 million.
After-hours trading saw shares rise to over $170. Nvidia’s stock is up over 28% from the beginning of the year, but is still well below its high of over $289 in October.
Nvidia was one of the hottest stocks in the S&P 500 in 2016 and 2017, but concerns about China’s economy led to a drop in shares last year.
Today’s stock bump comes in the midst of an escalating trade war between the US and China.