Bitmain threatens AMD and Nvidia

Bitmain threatens AMD and Nvidia

As reported by CNBC, one of the companies on wall street, under the name Susquehanna changed the rating of AMD from neutral to negative and downgraded the stock prices of another manufacturer of graphics cards – Nvidia. The main reason for this forecast is the increasing of the manufacturer ASIC-s, Bitmain, which had previously announced the launch of the miners for mining Ethereum (ETH).

Susquehanna analyst Christopher Roland said in a letter to customers that Bitmain will produce ASIC for the production of ETH, since the second quarter of 2018, adding that although Bitmain probably will remain the largest producer of ASIC-s (currently 70-80% of the market ASIC-s belong to this company) and the first person to vishala on the market with a similar product, there are at least three companies planning to start producing ASIC and Ethereum.

According to Roland, the emergence of ASIC miners for ETH negatively affect AMD and Nvidia. From 10 to 20 per cent of the revenues of these companies are generated by selling equipment to miners, who work mainly with the Ethereum network.

The new target price of AMD stock is 7.50 USD, and this decline is almost 50% of the old price, which was of 13.00 USD. The Outlook on the shares of Nvidia is 200 USD on Friday trading on the shares of the company closed at $ 215 US. Roland noted that the neutral rating Nvidia has not changed, because “Nvidia are stronger and more durable gaming franchise that can help her cope with growing competition from Bitmain”.

Recall that according to the report, one of the analyst firms, profit Bitmain over the past year ranges from 3 to 4 billion dollars. For comparison, the Nvidia profit in 2017 amounted to $ 3 billion.

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