Investors Are Excited About The Blockchain Prospects Of Amd And Nvidia

According  to Reuters, the quarterly earnings of American semiconductor company  AMD are alarming, making chip sales the focus of blockchain technology  providers. Blockchain, as a digital ledger, has gone beyond the cryptocurrency to welcome an explosive growth.

AMD and Nvidia's blockchain outlook is exciting for investors

The blockchain is the technology behind Bitcoin and Ethereum, and  cryptocurrency miners use fast graphics processing units (GPUs) to solve  complex mathematical problems and gain new digital currency as a  reward.

AMD  and NVIDIA will report their financial results next week. Both  companies sell GPUs, and they may receive significant gains when prices  rise. Analysts expect that as more companies worldwide announce plans to  enter the Bitcoin industry or blockchain technology, the sales of the  two companies will further increase.

Investors are excited about the future. AMD's stock price rose about 6% on Wednesday, while Nvidia's stock price rose 3%.

In 2017, the price of popular Bitcoin soared by more than 1,300  percentage points, attracting more people around the world to use  Bitcoin, pushing up demand for GPUs.

In the past, AMD and Nvidia tried to reduce their expectation of  potential revenue growth in the cryptocurrency, but analysts believe  that the gate of the blockchain is already open.

Stifel analyst Kevin Cassidy said: "We believe that the larger  category of blockchain is a sustainable GPU market, and it will  eventually become a specific application chip ASIC for blockchain  applications."

"We believe that both AMD and NVIDIA may benefit from it, and at least  they will benefit from providing intellectual property for ASIC."

Although  the blockchain is best known as a system to support Bitcoin, more and  more industries use it to improve security or business efficiency, such  as De Beers using blockchain technology to verify the authenticity of  diamonds. .

Credit Suisse analyst John Pitzer said, "Although some people think  that the benefits of encryption technology should be discounted, we  believe that the blockchain is more sustainable than most technologies."

Pitzer estimates that AMD sold about $320 million worth of chips to  blockchain companies in 2017, but this accounted for only a fraction of  AMD's full-year revenue (over $5 billion).

AMD  CEO Lisa Su said on Tuesday’s earnings conference call that although  the blockchain is a very liquid and dynamic market, AMD’s growth  momentum was strong in December, and this momentum continued to enter  this year’s The first quarter.

AMD’s  biggest competitor, Nvidia, will announce its fourth-quarter earnings  report on February 8. The company’s quarterly revenue announced in  October exceeded US$100 million.