Slumping Cryptocurrencies Won’t Stop Nvidia Stock


Gaming GPU demand will offset declining demand for cryptocurrency mining.

The semiconductor industry has enjoyed tremendous positive momentum in recent years led by chipmaker Nvidia Corporation (Nasdaq: NVDA). Yet even after the stock has gained nearly 1,000 percent in the past three years, Bank of America analyst Vivek Arya says Nvidia investors can expect more of the same in 2018 and beyond.

According to Arya, concerns over a potential softening in demand for cryptocurrency mining graphics processing unit (GPU) shouldn’t keep investors away from Nvidia. Arya says secular growth in PC gaming demand will be more than enough to offset any downturn in cryptocurrency demand.

“We see PC gaming as a secular, not cyclical, market that can potentially grow at a 19 percent annual pace [through 2020], or four times the growth rate of broader semis, driven by expanding adoption, new gaming formats (4K, eSports, VR) and favorable competitive dynamics,” Arya says. Looking ahead, Arya projects annual PC GPU gaming sales growth will be split equally between increasing unit sales and rising prices.

Arya forecasts a 24 percent uptick in GPU sales in 2018, including a 28 percent increase in PC GPU revenue. That trend is good news for both Nvidia and competitor Advanced Micro Devices (AMD).

Read more at:

Leave A Reply