The virtual currency trend continues to fever, with GPU sales. Foreign investors warned that the tempting profit of the virtual currency caused "false purchases". In the long run, the two graphics chip makers Nvidia and AMD will face significant risks.
The Street, Barron reported that many Ethereum miners use GPU mining to increase computing power. Susquehanna analyst Christopher Rolland reports that the mining of the GPU helps beyond the expectations of Nvidia and Chaowei, and the two companies face huge risks. Many people buy GPUs as video game players. In fact, GPUs only play 5% of the time, and the remaining 95% of the time is used to mine virtual coins.
Rolland believes that mining compensation is excellent, causing false sales of GPUs, and the two companies have considerable long-term risks. In the event that the price of the Ethereum falls, Chaowei has more exposure. He cut the target price of Chaowei, from $15 to $13. In other words, if the price of the Ethereum is lower, the player may not be willing to pay for the GPU, which will impact sales.
According to the report, the price of the Ethereum network rushed, and the GPU computing resources of the Ethereum network jumped. He estimated that in the third quarter of 2017, the number of GPUs in the Ethereum network increased by 2.4 million units and valued at $300 million. In the fourth quarter, the number of GPUs increased, and the total number of GPUs added reached $500 million. The GPU buying by the virtual currency has a considerable proportion of revenues in the two companies, and the importance is constantly increasing.
Rolland said that the current GPU market price is 40~70% higher than the official price, indicating that the buying momentum will continue to be strong this season.
Analysts warn that miners may switch to software solutions and reduce their dependence on hardware. The demand for graphics chips next year may not be as high as everyone thinks.
MarketWatch, Business Insider and other foreign reports, Mizuho analyst Vijay Rakesh published a research report on November 27, 2017, pointed out that the mining operation of virtual currency is extremely complicated, many miners decided to give up hardware (depending on the graphics processor) Software solutions, such as pool mining combined with cloud power, or cloud mining using large application-specific integrated circuit (ASIC) tools.
For the above reasons, Rakesh believes that although Bitcoin and Ethereum offer are arrogant, and Nvidia and Chaowei's share price have been pushed up in the near future, this share price momentum triggered by the virtual currency mining trend may be greatly reduced in 2018. (full text see here)
Hf Driver,Compression Driver,Titanium Diaphragm Driver,Horn Drivers
Guangzhou BMY Electronic Limited company , https://www.bmy-speakers.com