Analyst: Cryptocurrency Mining Is Boosting AMD and Nvidia Stock Prices

At least one major Wall Street stiff expects that the stock prices for Nvidia and Advanced Micro Devices Inc. (AMD) will proceed climbing spil both companies proceed to pursue opportunities ter the cryptocurrency mining market.

Nvidia has seen its stock leap almost 180 procent overheen the last year, while AMD has hopped 112 procent spil well, thanks to cryptocurrency miners’ extensive need for powerful graphics processing units (GPUs). Global investment banking rock-hard Jefferies believes the market for GPUs will remain strong overheen the next several months, according to a fresh report.

According to a client note written by Jefferies analyst Mark Lipacis, the stocks are the market’s top performers for the past year – a state of affairs that is expected to proceed looking ahead.

Ter the letterteken (quoted by CNBC), Lipacis said:

“Wij think that the risk of a ‘crypto-driven’ inventory correction driving material downside is low te the near term . Both AMD and NVDA have introduced ‘cryptospecific GPU [stock-keeping unit]’ that have a low risk of challenging with core gaming GPUs ter secondary markets.”

Both companies have taken advantage of cryptocurrency mining by developing and selling GPU models specific to that market. Cryptocurrency mining is an energy intensive process by which fresh transactions are added to a blockchain, creating fresh coins ter the process spil a prize.

Looking ahead

Ter the long-term, Lipacis does not expect either company to have to challenge with second-hand equipment being sold by miners after they are through with the machines.

At the same time, Lipacis suggested that GPU prices could dip, an eventuality that may have an influence on the stock prices.

Even if the market for mining GPUs collapses, Lipacis does not believe it will have a major influence on either company’s bottom line. He expects AMD to go through a 3% druppel and Nvidia to go through a 10% decrease te the event of a major catastrophe.

Spil previously reported, both companies have moved to capitalize on the rente te GPUs among the world’s miners. Nvidia’s CEO, Jen-Hsun Huang, recently proclaimed that “cryptocurrencies and blockchain are here to stay,” signaling his stiff’s long-term plans for the market.

While AMD hasn’t bot spil outwardly bullish te its own public statements, the company has seen significant rente ter its products from miners spil well.

Photo Credit: MAX SAYPLAY / Shutterstock.com

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