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New Cryptocurrency Mining Chip Will Hurt Nvidia, AMD

Investing.com - Chipmakers Nvidia and AMD will take a hit to their cryptocurrency business with the arrival of new specialized mining chips later this year, according to one Wall Street firm.Susquehanna Financial Group says China's Bitmain Technologies has developed a ASIC chip for mining Ethereum, the second largest digital currency, and will begin shipments in the second quarter of this year. Three other companies in Asia are thought to have Ethereum ASIC chips in various stages of development.AMD and Nvidia are expected to release next-generation graphics cards soon, which may help them retain some business. Bitmain's ASIC chip already dominates bitcoin mining. Susquehanna downgraded AMD from neutral to negative and slashed its 12-month stock-price target from $13 to $7.50. The firm trimmed its price target for Nvidia from $215 to $200 but kept its rating at neutral.