Wall Street Firm Rates AMD Negative, Lowers Nvidia Shares For Bitmain Miner

Wall Street Analyst Lowers Price Targets Of AMD, Nvidia Shares In Reaction To Bitmain

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  • Wall Street firm, Susquehanna, drops AMD rating from neutral to negative, lowers Nvidia shares.
  • The firm claims this is due to a reaction to Bitmain’s Ethereum (ETH) mining ASICs.

Wall Street: According to a report reaching Cryptona.co today 26th March, Susquehanna – a Wall Street firm – in reaction to rising competition from Bitmain Ethereum (ETH) mining ASICs, have dropped the rating of AMD, a semiconductor firm, from neutral to negative. The firm also dropped the price forecast for Nvidia shares – a GPU processing manufacturer.

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Christopher Rolland, one of the Susquehanna analysts, told customers in a note that Bitmain – a 4-year-old firm – would commence the shipping of ASIC for mining Ether in the second quarter of 2018. He added that though

“Bitmain is likely to be the largest ASIC vendor (currently 70-80% of Bitcoin mining ASICs) and the first to market with this product, we have learned of at least three other companies working on Ethereum ASICs, all at various stages of development.”

Rolland stated that the dominance of Bitmain’s ETH ASIC miners would have an adverse effect on AMD and Nvidia – firms whose graphics cards for ETH mining already made up almost 20% and 10% of the firms’ revenues respectively.

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At the last Friday’s market close, the AMD shares dropped down from $13.00 to $7.50, while the Nvidia shares dropped from $215 to $200. Though the AMD rating turned negative from neutral, Rolland stated that Nvidia’s rating remained neutral, due to the fact that:

“Nvidia has a stronger and more durable gaming franchise which would help it work through this potential Ethereum-related unwind.”

In February, a released research report revealed that Bitmain made a profit of about $3 to $4 billion in 2017, while Nvidia, a 24-year old firm made about $3 billion in profit in 2017.

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