Nvidia Stock Has Been Damaged by Crypto Before. Why It Matters Again Now.

Nvidia Stock Has Been Damaged by Crypto Before. Why It Matters Again Now.

Nvidia Stock Has Been Damaged by Crypto Before. Why It Matters Again Now. - Order Reprints - Print Article Investors in graphics chip maker Nvidia could soon be in for a rude awakening following a Chinese government crackdown on cryptocurrency mining. Since Beijing moved earlier this year to curb large cryptocurrency-mining operations, the Chinese market has been flooded with inexpensive, used graphics cards, made by Nvidia (ticker: NVDA), that were once used to produce Ethereum, New Street Research analyst Pierre Ferragu wrote Thursday in a note. The market saturation, and declining mining activity overall, prompted the analyst to caution investors about Nvidia stock. Ferragu says a big, rapid slowdown in cryptocurrency activity and an oversupply of Nvidia’s powerful chips could cut into the company’s revenue. Cryptocurrency has become an increasingly important part of the company’s business in recent quarters. According to Ferragu’s research, cryptocurrency revenue may have amounted to $500 million to $1 billion in the first quarter, or roughly 10% to 20% of overall revenue of $5.7 billion. Finance Chief Colette Kress said recently that in the first quarter, …
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