- Susquehanna analyst Christopher Rolland says AMD (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA) “likely benefited” from Q4 Ethereum-related GPU sales totaling more than $500M.
- Rolland says the cryptocurrency mining trend continued into the beginning of 2018 and probably brought in more than $200M in GPU sales within the first few weeks.
- The analyst says that “mining profitability remains among the highest in history” and retail markups remain at all-time highs, hinting at a strong demand and weak supply.
- But Rolland notes that there are “substantial long-term risks for both companies as mining profitability may have induced ‘false purchases’ of more and higher-priced cards” and accordingly lowers his AMD price target by $2 to $13.
- Firm maintains a Neutral rating on AMD and Nvidia.
- AMD shares are up 3.1%.
- Nvidia shares are up 0.3%.
- Previously: AMD clarifies Spectre vulnerability, fix (Jan. 12)
- Previously: Lawmaker probes scope of Spectre and Meltdown (Jan. 17)
- Now read: Basking In Its Own Brilliance: Nvidia
Original article