Nvidia and AMD’s Mining Profit
The shares of Nvidia and AMD have experienced an extreme increase in value over the last 12 months and stand at positions 1 and 2 of the S&P 500 ’s rankings for this period. This is largely also supported by the use of powerful graphics cards through crypto-currency mining activities.
In the future, the two graphic card manufacturers are likely to continue to gain value, at least if one can believe the analysts US investment bank Jefferies & Co. It was said there that the thirst for technological progress, which involves the development and further development of new graphics cards, was still far from being satisfactory. In particular, the initiatives of both manufacturers to develop products specifically targeted at crypto-currency mining activities, are a continuation of the upward trend.
Nvidia and AMD both had an outstanding year behind them and, despite mutual competition, benefit almost equally from the upturn that intensified crypto-currency mining activities around the world brings to the graphics card business, despite the competition. For example, Nvidia increased by almost 180% during the year, while AMD grew by 112% (more on the upturn in Nvidia’s current edition of the crypto-compasses).
„The fact that a new, cryptographic-inspired invention will lead to conventional graphics cards in terms of mining power is rather unlikely at least in the short term,“ says Jefferies‘ semiconductors analyst Mark Lipacis.
Lipacis sees the possible negative effect of a collective price drop on the price of the shares of the two graphic card producers, which is „rather subdued“ than in earlier periods. Rather, he reaffirms the expectation that the price developments of the shares of both companies would remain „healthy“ for the remainder of the year. Thus he considers the long-term demand as covered by the still growing crypto-currency market.
We seriously believe that the blockchain technology on which they are based (cryptic, A.d.R.), which supports secure book-keeping using distributed ledgering, can also be applied in the financial industry beyond cryptic approaches. We expect the demand for block-based graphics cards to rise and it will be an important driver for the future development of graphics processors, „said Jefferies, quoted by CNBC.