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This Is How a Crypto Crash Could Impact Semiconductor Stocks

By Jose Najarro - Jun 23, 2021 at 8:00AM

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A crackdown on cryptocurrency mining can slow down revenue for these two semiconductor giants.

In today's video, I look at how the stock prices of Advanced Micro Devices (AMD 2.21%) and NVIDIA (NVDA 2.39%) can be affected by the current volatility in the cryptocurrency market. Below I share a few highlights of the video. 

  1. Some of the most impactful news hitting the Bitcoin (BTC 0.19%) market is the crackdown of cryptocurrency mining in China.
  2. Both NVIDIA and AMD produce graphics processing units (GPUs), a component needed for cryptocurrency mining machines. For the past few quarters, cryptocurrency mining has accelerated revenue growth for these two companies. Unfortunately, neither can provide an actual financial value, so investors are left with the unknown variable of how a slowdown in cryptocurrency mining can affect each company's revenue. This unknown variable may bring volatility to semiconductor stock prices until the upcoming earnings reports.  
  3. I also take a look at the current prices and provide an overview of the GPU reseller market.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of June 22, 2021. The video was published on June 22, 2021. 



Jose Najarro owns shares of Advanced Micro Devices and NVIDIA. The Motley Fool owns shares of and recommends Bitcoin and NVIDIA. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

NVIDIA Corporation Stock Quote
NVIDIA Corporation
NVDA
$187.73 (2.39%) $4.38
Advanced Micro Devices, Inc. Stock Quote
Advanced Micro Devices, Inc.
AMD
$100.44 (2.21%) $2.17
Bitcoin Stock Quote
Bitcoin
BTC
$23,418.63 (0.19%) $44.26

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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