The cryptocurrency boom of last year really led many big companies to believe that it was going to last for a long time. Companies like NVIDIA, AMD put a lot of their eggs in that basket, and are regretting it now. One such company is ASRock, which is expecting its profits to take a huge hit because of its unsold GPU inventory. According to anonymous sources, it is expected that the company will offer discounts on its graphics cards to get rid of its residual inventory, but this cannot be expected to be done until the second half of 2019.
ASRock, majorly known for manufacturing motherboards, entered the GPU market last year after demand for GPUs reached new heights as more and more users started to mine cryptocurrencies. The move made sense at the time but as the cryptocurrency values started to plummet, the users were not able to afford high-end PCs required to mine and GPUs from almost every major company were left unsold.
Although ASRock suffered in the GPU business, its motherboard, industrial PC and server businesses have remained stable this year. Even the GPU business suffered only because of the older generation cards that were left unsold, as the Radeon VII GPU from ASRock is selling quite well. The losses could be further reduced as AMD is expected to release its much anticipated Navi GPUs in Q3 of 2019, and ASRock can expect them to sell quite well too.