Sumary of Nvidia Stock Has Been Damaged by Crypto Before. Why It Matters Again Now.:
- 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.
- 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.