What Investors Should Know About NVIDIA’s (NASDAQ:NVDA) Relationship With Cryptocurrency

bitcoin mining oil

NVIDIA (NASDAQ:NVDA) showed a report of strong earnings over the third quarter of this year with revenue jumping as high as 32{7b1a8a58d3ffe2d8e535e80e794d8bc0bf06a3ecc0c2050b83ca37784c6fddca}. The GAAP earnings per share soared up a staggering 60{7b1a8a58d3ffe2d8e535e80e794d8bc0bf06a3ecc0c2050b83ca37784c6fddca}, and the adjusted EPS went up by a solid 41{7b1a8a58d3ffe2d8e535e80e794d8bc0bf06a3ecc0c2050b83ca37784c6fddca}. Both the top and bottom lines beat the expectations from Wall Street by a large margin. One analyst conference call discussed how the cryptocurrency market is affecting the company’s business.

Don’t Forget to Join our FREE Text list! From Your Cell Phone Text the Phrase CRYPTO to 474747

NVIDIA is the largest supplier of GPUs to those who mine cryptocurrency around the world, and due to the increasing amount of those getting into the crypto space, the company’s revenue has shot up accordingly. Mining is the process where individuals with high powered computers compete to solve computational problems. If they solve the problem, they are rewarded in the form of cryptocurrency. This has become a large source of revenue for many, and is dependent on high amounts of computing power.

With chips from NVIDIA, those who mine have a better chance at completing these problems in a faster method. The size of NVIDIAs cryptocurrency business is quite large, and is not fully reflected in the earnings report. NVIDIA is generating a solid amount of revenue from the crypto space and only looks as though they will continue to do so as long as there is a market for it. One investor stated that “when a digital currency market becomes very large, it entices somebody to build a custom ASIC for it. Bitcoin is the perfect example of that.

Don’t Forget to Join our FREE Text list! From Your Cell Phone Text the Phrase CRYPTO to 474747

But then what happens is a couple of players start to monopolize the marketplace and it chases everybody out of the mining market and it encourages a new currency to emerge. The hopes are high that the industry will stay fair to those looking to mine as time goes on.


Please enter your comment!
Please enter your name here