In today's video, I look at how the stock prices of Advanced Micro Devices (AMD 0.09%) and NVIDIA (NVDA 1.45%) can be affected by the current volatility in the cryptocurrency market. Below I share a few highlights of the video.
- Some of the most impactful news hitting the Bitcoin (BTC -0.22%) market is the crackdown of cryptocurrency mining in China.
- 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.
- 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.