Why Cryptocurrency Investors Should Pay Attention To Nvidia's Earnings
NVIDIA Corporation (NASDAQ: NVDA) reports earnings Thursday, and what may be of greater interest than gaming revenue and auto contracts are the company's reflections on cryptocurrency.
Advanced Micro Devices, Inc. (NASDAQ: AMD) CEO Lisa Su predicted “some leveling-off of some of the cryptocurrency demand” on Oct. 24 after earlier in the summer reporting conservative guidance for the segment.
What Chip Sales Mean For Bitcoin
The price of cryptocurrency is driven by both transaction volume and mining mechanics, according to Coindesk, and miners are known to use AMD and Nvidia graphics cards in the process.
A leveling of mining-related chip demand, as anticipated by AMD, may herald a correlated leveling of bitcoin value. To be fair, it may also mean market saturation for the chipmakers or miners’ embrace of alternative technology.
AMD has notably less exposure to the crypto landscape than Nvidia does — the component comprises a respective 3 percent and 10 percent of revenue, according to Jefferies — so any comments from Nvidia on cryptocurrency demand could be a meaningful signal to bitcoin investors.
Bitcoin’s Trajectory
The popular cryptocurrency surged from less than $1,000 at the start of the year to nearly $7,100 today.
The Street is rife with bears, nonetheless. From short-seller Andrew Left to competitor Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE: JPM), many have called for bitcoin’s fall.
Some analysts still see upside, with one projecting a surge to $11,000 in 2018 and $50,000 by 2027.
Related Links:
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How Wall Street’s Head Honchos Feel About Cryptocurrency
10 Most Ridiculous Cryptocurrencies
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