Nvidia: As Institutions Pile into Ethereum, Rising Prices to Lift GPUs, Says RBC

A rise in crypto-currencies such as Ethereum is good news for Nvidia (NVDA) investors, according to a note today from RBC Capital‘s Mitch Steves, who reiterates an Outperform rating on the shares, opining the price rises will propel use of Nvidia’s GPUs for as long as prices keep rising.

The “payback period” for crypto-currencies has dropped “materially” with the price increases of the currencies, he writes, including not just Ethereum but also “Monero,” “zCash,” and Bitcoin. Htye’ve all risen by 36% or better, and 145% in the case of Bitcoin, just in the last few weeks.

The payback for Ethereum is now around 5.6% months, down from 9.4 months before the rise, writes Steves. These declines in payback period promote use of GPUs for mining, he writes, and “may lead to continued strength in GPU sales” for mining.

Steves opines the move up in the currencies is at least partly a result of institutional money getting into the currencies:

This is a…


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