As we forecasted earlier, NVDA has crushed estimates and bears again. Q4 results were driven by gaming (read crypto mining). Read on to see what Q1 has in store for NVDA (hint: more good news is likely to come).
Summary: AMD, in its Q4 earnings call, revised its cryptocurrency exposure up to high-single-digits, while an analyst noted that the “amount of hash compute being added to Ethereum in January is more than the whole of Q4.” This is a huge deal! Despite the pullback, if you bought Ethereum on the first day of 2017, you still made an incredible 11,171%! Yet, even sophisticated Wall Street investors do not understand even basic crypto concepts, like the fact that there is much more to the market than Bitcoin. That means more opportunity for the rest of us.
What factors drive demand for GPUs used for cryptocurrency mining? That is a common question from my readers and one that I will answer in this article.
I recently published an article on Nvidia’s (NVDA) exposure to Bitcoin and other cryptocurrencies. One of my readers asked me to write an article on Advanced Micro Devices’ (AMD) exposure to cryptocurrencies and I’m happy to oblige. Figuring out AMD’s exposure is more of a wild goose chase than estimating NVDA’s, but we have enough to provide an educated guess.