Analysts downgrade AMD and Nvidia’s financial outlooks over rumoured Ethereum mining ASIC
Analysts downgrade AMD and Nvidia’s financial outlooks over rumoured Ethereum mining ASIC
Christopher Rolland, an analyst for Susquehanna, says that “We confirm a Bitmain Ethereum ASIC”, stating that 20% of AMD’s sales are from Ethereum miners. The same analyst has also reported that 10% of Nvidia’s sales are to Etherium miners, potentially freeing up a lot of GPU inventory for gamers in the coming quarters.
Rolland has lowered AMD’s share pricing expectations to $7.50 from $13 and Nvidia’s from $215 to $200. The massive drop for AMD is especially strange, given the fact that the firm is not wholly reliant on their GPU sales, with their Ryzen series CPUs continuing to prove popular in the consumer and enterprise markets.
A Bitmain mining ASIC for Ethereum will replace gaming GPUs in time, but only for that specific cryptocurrency. Miners will quickly move to another profitable cryptocurrency, which means that the introduction of an etherium ASIC will not bring about a mining apocalypse.
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