Share this article
Analyst: Cryptocurrency Mining Is Boosting AMD and Nvidia Stock Prices
AMD and Nvidia's work to attract cryptocurrency miners is paying off in the stock market, analyst Jefferies said today.
By Nikhilesh De
Updated Sep 13, 2021, 6:55 a.m. Published Sep 12, 2017, 8:05 p.m.
Make us preferred on Google
At least one major Wall Street firm expects that the stock prices for Nvidia and Advanced Micro Devices Inc. (AMD) will continue climbing as both companies continue to pursue opportunities in the cryptocurrency mining market.
Nvidia has seen its stock jump almost 180 percent over the last year, while AMD has jumped 112 percent as well, thanks to cryptocurrency miners' extensive need for powerful graphics processing units (GPUs). Global investment banking firm Jefferies believes the market for GPUs will remain strong over the next several months, according to a new report.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
According to a client note written by Jefferies analyst Mark Lipacis, the stocks are the market's top performers for the past year – a state of affairs that is expected to continue looking ahead.
In the letter (quoted by CNBC), Lipacis said:
"We think that the risk of a 'crypto-driven' inventory correction driving material downside is low in the near term ... Both AMD and NVDA have introduced 'cryptospecific GPU [stock-keeping unit]' that have a low risk of competing with core gaming GPUs in secondary markets."
Both companies have taken advantage of cryptocurrency mining by developing and selling GPU models specific to that market. Cryptocurrency mining is an energy intensive process by which new transactions are added to a blockchain, creating new coins in the process as a reward.
Looking ahead
In the long-term, Lipacis does not expect either company to have to compete with second-hand equipment being sold by miners after they are through with the machines.
At the same time, Lipacis suggested that GPU prices could dip, an eventuality that may have an impact on the stock prices.
Even if the market for mining GPUs collapses, Lipacis does not believe it will have a major impact on either company's bottom line. He expects AMD to undergo a 3% drop and Nvidia to undergo a 10% decrease in the event of a major catastrophe.
As previously reported, both companies have moved to capitalize on the interest in GPUs among the world's miners. Nvidia's CEO, Jen-Hsun Huang, recently declared that "cryptocurrencies and blockchain are here to stay," signaling his firm's long-term plans for the market.
While AMD hasn't been as outwardly bullish in its own public statements, the company has seen significant interest in its products from miners as well.
Image Credit: MAX SAYPLAY / Shutterstock.com
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
How a 'perpetual’ stock trick could solve Michael Saylor’s $8 billion debt problem
The bitcoin treasury firm is using perpetual preferreds to retire convertibles, offering a potential framework for managing long-dated leverage.
What to know:
- Strive upsized its SATA follow on offering beyond $150 million, pricing the perpetual preferred at $90.
- The structure offers a blueprint for replacing fixed maturity convertibles with perpetual equity capital that removes refinancing risk.
- Strategy has a $3 billion convertible tranche due in June 2028 with a $672.40 conversion price, which could be addressed using a similar preferred equity approach.
Top Stories
