The recent drop in Ethereum prices may have hurt quite a few investors betting on the rise of cryptocurrency–but the digital coin is still a boon to investors of semiconductor stocks Nvidia


nvda

and Advanced Micro Devices (AMD).

At least for now.

That’s based on a Tuesday note from Morgan Stanley analysts led by Joseph Moore, who say that Ethereum prices have remained high overall–up about 8,900% over the past year–making Ethereum mining more profitable. In turn, that profitability has driven consumers to snap up graphics processing units (GPUs) used to mine, or acquire new cryptocurrencies, from major suppliers such as AMD and Nvidia.

The profitability of mining Ethereum has risen over 200% since October, wrote Moore, despite falling below $1,000 earlier this week.

According to Morgan Stanley estimates, miners today earn roughly $1.76 each day in profits per each GPU owned. That’s up from 56 cents in October. Those figures assume the miner owns an AMD Radeon 580 and pays roughly 70 cents per day for each GPU’s electricity.

Computing power dedicated to Ethereum mining rose by 2,200 terahash per minute in the third quarter to 3,672 terahash per minute in the fourth quarter, the bank …read more

Source:: Fortune.com – Tech

(Visited 3 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *