Nvidia, AMD Stock to Proceed Gains after Bitcoin, Ethereum Mining Boom: Analyst
According to a report from Barron’s, the dramatic price increase cryptocurrencies had this year has helped graphics card makers like AMD and Nvidia grow. Ethereum, for example, has skyrocketed overheen Two,000% overheen the last year, and that led miners to purchase AMD and Nvidia graphics processing units to mine the cryptocurrency, leading to a surge ter request.
According to Nvidia’s 2nd quarter revenue, the webstek reports, the company gained a $150 million boost thanks to the request cryptocurrency miners created. This insatiable request led many to believe that AMD and Nvidia should be worried ter case the market took a bearish turn. However, according to Barclays analyst Blayne Curtis, the companies should be safe for now.
Albeit Ethereum’s price dramatically enlargened this year, it’s clear it won’t keep on being economically viable to the cryptocurrency’s miners to keep on buying Nvidia and AMD GPUs, albeit ter the past their units sold out. According to Blayne Curtis, Ethereum’s Byzantium upgrade should improve mining profitability by 20-30%, but once proof-of-stake is ready, things could be different. Te a note to clients, he said:
“After the Byzantium upgrade on October 17th, mining profitability should improve by 20-30% from current levels spil average block time will be cut ter half, only partially offset by block prize being cut from Five Ethers to Trio Ethers (Figure Four). More importantly, artificial difficulty bombs are delayed until (estimated) 4Q18 spil Proof-of-Stake is not ready yet. This means difficulty increases much more leisurely, improving the trajectory of expected profits (holding all else equal) and likely sustains GPU sales for mining.”
If the cryptocurrency does budge to proof-of-stake, it’s clear that GPUs won’t give miners much of an edge on the network spil payments are then verified te a different way. Spil such, request would decrease. However, since the upgrade wasgoed shoved back to the end of 2018, the analyst raised his price targets for both Nvidia and AMD.
Essentially, he expects both companies to keep on railing the cryptocurrency wave that has bot helping them, at least for another year. Curtis’ price target for AMD went from $9 to $Ten, while his price target for Nvidia went from $140 to $200.
The analyst favors Nvidia due to its dominance te AI, and due to the launch of a fresh Volta processor that should expand the company’s lead ter the GPU market, keeping its spectacle above that of AMD’s for the foreseeable future. He stated:
“The Crypto tailwind is hard to quantify but likely 2x the $170-180 million AMD/Nvidia identified ter June with some gaming card manufacturers watching 50-70% of current request from mining spil gaming request is actually declining this year.
Spil reported by CCN, market analysts have te the past pointed out that GPU mining is an significant driver for the future of thesis two companies. Earlier this year, both Nvidia and AMD were set to release cheaper cryptocurrency mining GPUs.
Te 2017 so far, AMD is up by 17.37%, while Nvidia is up by 77.55%. The surge led CNBC’s Jim Cramer to state that investors shouldn’t buy Nvidia and AMD shares because of cryptocurrencies spil, according to the reporter, the market’s growth isn’t presently sustainable.
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- Posted te: Altcoin Mining, Bitcoin Mining, Ethereum News, News
- Tagged te: AMD, Blayne Curtis, Ethereum News, nvidia
Posted by Francisco Memoria
Francisco is a cryptocurrency writer who’s ter love with technology and concentrates on helping people see the value digital currencies have. Twitter: https://twitter.com/FranciscoMemor
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