Nvidia misses sales target for third quarter, shares plunge 17%

Nvidia also said that its revenue derived from personal computer makers decreased by almost 40 per cent because of lower demand for GPU products targeted for use in cryptocurrency mining

Chip designer Nvidia Corp on Thursday forecast disappointing sales for the holiday quarter, pinning the blame on unsold chips piling up with distributors and retailers after the evaporation of the cryptocurrency mining boom.

The California-based company also posted sales that missed expectations for its third quarter. Shares plunged nearly 17 per cent in late trading to $168.32.

For decades, Nvidia has supplied gaming cards to boost computer graphics, but in recent years cryptocurrency miners adopted the company's cards to turn bits into wealth.

Chief Executive Jensen Huang said prices for Nvidia's gaming cards had risen with the cryptocurrency frenzy, driving some buyers away.