NVIDIA Corporation (NVDA): Mitch Steves Forecasts Sustained Strength in GPU Sales on Back of Boost in Crypto-Currencies

RBC's Mitch Steves is a Nvidia bull who believes the recent surge in currencies points to substantial price appreciation in GPUs.

NVIDIA Corporation (NASDAQ:NVDA) shares could be getting a nice Ethereum lift thanks to a boost in crypto-currencies likely translating to an upturn in price, subsequently driving up demand for the chip giant’s graphic processing units (GPUs).

From the eyes of RBC Capital analyst Mitch Steves, dips in the “payback period” for crypto-currencies that so far has been “materially” falling as the price of currencies rallies upward “may lead to continued strength in GPU sales.”

Steves continues, “This is a multi-faceted question; however, we think investors are beginning to realize the value that crypto currencies offer. The “cat is out of the bag” so to speak and we wouldn’t be surprised to see more and more institutional money and high net worth individuals invest in the rapidly growing space (now a $300B+ market on a fully diluted basis). The lightning network for Bitcoin has made significant progress, the software development team is working on ring signatures for confidential transactions and the Metropolis update for Ethereum was seen as a confidence booster as well. Overall, the technology is progressing at a rapid rate combined with more institutional interest which is likely driving the prices up.”

Can this momentum stay fired up? The answer is not a clear-cut yes, but as far as the analyst is concerned, “crypto currencies are here to stay.” Steves surmises offering shareholder advice to “continue to track all crypto currencies that are mined with GPUs over the next 1-2 months as the prices have appreciated materially.”

As such, the analyst maintains an Outperform rating on NVDA stock without listing a price target. (To watch Steves’ track record, click here)

Cautious optimism circles this semiconductor player, with TipRanks analytics exhibiting NVDA as a Buy. Out of 25 analysts polled by TipRanks in the last 3 months, 13 are bullish on Nvidia stock, 11 remain sidelined, while 1 is bearish on the stock. The stock’s consensus price target stands at $215.18.

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