Nvidia cuts its crypto risk

Article Excerpt

NVIDIA CORP. $762 remains a buy for aggressive investors. The company (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 623.0 million; Market cap: $474.7 billion; Price-to-sales ratio: 24.7; Dividend yield: 0.1%; TSINetwork Rating: Average; www.nvidia.com) is a leading designer of 3D-capable video chips. Nvidia’s chips are also a favourite of cryptocurrency miners, who need powerful computers to verify online transactions. In turn, they get paid in the cryptocurrency of the transaction they’ve verified. Sales to miners account for about 3% of Nvidia’s revenue. The company now plans to launch new dedicated video cards for miners. At the same time, it will make its cards for videogamers less useful to the needs of cryptocurrency users. This strategy will protect those cards from increasingly volatile cryptocurrency prices. In 2017, card sales soared as crypto prices rose. However, when prices crashed in 2018, miners dumped their cards on secondary markets, which depressed Nvidia’s product sales. Nvidia is a buy for aggressive investors…