Nvidia is Getting Hit Hard with the Crypto Sell Off
This is some pretty crazy news and shows the power of analysts in the industry. One person says "sell" and EVERYONE sells, One person says "buy" and the stock explodes. It must be nice to have that kind of power over the market.
The slide on Wednesday continues Nvidia's fall from the previous day, which came after Mizuho analyst Vijay Rakesh called an end to the crypto boom for Nvidia and other graphics chip makers. Nvidia's graphics cards are often used by cryptocurrency "miners" to try and speed up their systems, and the company has seen increased demand as cryptocurrencies skyrocket in value.
Bitcoin and other cryptocurrencies have hit several major milestones this week, including bitcoin's crossing of $10,000 per coin for the first time ever on Tuesday.
As some of you who follow tech stocks may have noticed NVDA was on fire this summer rising up to an all time high and then kept going. Some of that was fueled by the power of Pascal. Pascal is the new GPU architecture that delivers more gaming power per watt than any other GPU in existence.
The reduced power demand appealed to gamers for its smoother gameplay, higher framerates and powerful overclocking. (even though the overclocking was actually just Turbo Boost adjusting clocks to where they "should" have been) Cryptominers were looking to maximize profits by reducing their power consumption and thermal demands and started buying up every GPU they could find.
Shortages created demand which pushed stocks up and made NVDA a very rich company. It will be interesting if the stock will rebound of if this tiny blimp will be their 5 minutes of fame.
Related Web URL: http://markets.businessinsider.com/currencies/news...
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